FHA Loan Program
First Time Home Buyer
3.5% Down Payment
$100 down for qualified HUD Repo properties
What is an FHA loan?
The Federal Housing Administration (FHA) runs several programs to promote home ownership. These programs are popular because they allow borrowers to buy a home with a smaller down payment than is required by most other lenders. FHA loans make it easier for people to qualify for a mortgage, but they are not for everybody.
An FHA loan is a loan insured against default by the FHA. In other words, the FHA guarantees that a lender wont have to write off a loan if the borrower defaults the FHA will pay.
The FHA promises to pay lenders if a borrower defaults on an FHA loan. To fund this obligation, the FHA charges borrowers a fee. Home buyers who use FHA loans pay an upfront mortgage insurance premium (MIP). They also pay a modest ongoing fee with each monthly payment. If a borrower defaults on an FHA loan, the FHA uses collected insurance premiums to pay off the mortgage.