In 1934, the Federal Housing Administration (FHA) was established to improve housing standards and to overhaul the mortgage home financing system. The FHA does not make home loans nor does it set interest rates; instead, homeowners pay mortgage insurance (there is a one-time Up-Front Mortgage Insurance Premium (UFMIP) that is financed into the loan at purchase. Homeowners also pay monthly Mortgage Insurance. Should a homeowner default, the lender is paid from the insurance fund. Since a portion of the loan is being insured by the government, the risk of loss to lenders is lower, and they pass on this reduced risk in the form of lower down payment requirements, lower interest rates, and more flexible underwriting guidelines and requirements.
The result of this is that families who might otherwise be excluded from the conventional mortgage loan market can buy, refinance, or renovate their dream home.
The Federal Housing Administration (FHA) has a number of loan programs and options to help you become a homeowner or refinance (and even improve!) your home. As experts in FHA programs, rest assured that, from start to finish, we can put you into the best loan for which you're qualified in a process that’s as smooth and efficient as possible.
Benefits of an FHA loan:
An FHA 203(k) loan allows homebuyers and homeowners to roll the cost of renovations into one new loan. This program can also be used to buy a new home that needs work (a little or a lot!). Click here for more information on the FHA 203(k) programs.
More FHA info:
Fill out our Quick Quote on the right and one of our specialists will contact you. No credit check needed.