FHA stands for the Federal Housing Administration, which is part of the U.S. Department of Housing and Urban Development (HUD). The FHA loan program is available for FHA-approved lenders to offer a variety of financing options to their clients.
If you’re planning on buying a home, the FHA loan program may be an ideal option for both first time home buyers and repeat buyers alike. With only a minimum 3.5% down payment needed, and lower credit score requirements than other loan programs, these government insured mortgage loans have guidelines designed to help borrowers to afford home ownership.
For current homeowners looking to refinance their FHA home purchase, the program offers a streamline refinance option.
Another great feature of the FHA mortgage program is that it offers a rehab mortgage; also called a ‘203K mortgage’, for both purchase and refinance home loans.
A FHA rehab mortgage can help when you are:
- Planning to purchase a home with repair contingencies
- Looking for a cost effective way to repair or improve your current home
- Rehabilitating a neglected or damaged foreclosure (within FHA eligible repair guidelines)
If you’re looking for a home mortgage to help restore a property or have limited funds for a down payment, let an experienced mortgage lender help determine if a FHA loan is the right option for you.