What is an FHA Loan?
An FHA Loan are a government insured loan. It is insured by the Federal Housing Administration (FHA). Primarily, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments.
Pros of the FHA loan:
- Down payment as little as 3.5% down\
- Can use higher ratios then Conventional loans
- Allow for lower FICO scores
- Can be layered with Down Payment Assistance for first time home buyers
Cons of the FHA Loan:
- Upfront Mortgage insurance premium is rolled onto the loan amount
- The monthly mortgage insurance stays on the payment for the life of the loan
Get Started Today
We can help you find the right financing to achieve your goal of owning a home. Debbi Galvan is focused on creating lifelong partnerships with our clients, and we would love the chance to work with you. Contact us today to learn more about FHA loans.
