An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance (MIP) in case the borrower defaults on his or her loan obligations.

Over the last three years the popularity of FHA financing has greatly increased. FHA loans are insured and backed by the Federal Housing Administration. FHA loans have been experiencing increased popularity with homebuyers for a few reasons:

• Lower downpayments – Currently FHA allows for a minimum 3.5% downpayment. What if you don’t have the money to buy right now? FHA allows the buyer to receive a gift for the downpayment from Family or Friends. Still short of funds for closing costs? Your real estate agent can ask the seller to pay your closing costs!
• Easier to qualify for – Generally FHA loans are easier to qualify for than Conventional loans. FHA has more flexible guidelines which allow us the ability to place more customers into homes. 
• Less than perfect credit is allowed – Late payments, old BK, collections… Contact us to discuss your specific situation.
• Low interest rates – The government insures these loans so Lenders are able to offer low interest rates!
• Co-signor - FHA allows the use of a co-signor!

Contact us to discuss the particulars of your scenario and to get Pre-Approved.

Current FHA products available:

Fixed Rate Mortgage

30, 25, 20, 15, and 10 year terms available.

As straightforward as you can get. Fixed rate. Fixed payment. Fixed term.. No prepayment penalty.

Hybrid Adjustable Rate Mortgages (ARM)

3/1 Initial interest rate is fixed for 3 years then the loan becomes an annually adjusting loan for the remaining 27 years.

5/1 Initial interest rate is fixed for 5 years then the loan becomes an annually adjusting loan for the remaining 25 years.

Adjustable Rate Mortgages have a few other terms associated with them. When considering an FHA ARM it is always a good idea to know what the initial start rate is, what index the loan is tied to, and what the Initial, Periodic, and Lifetime Adjustment Caps are. FHA ARMs have very attractive adjustments caps.

Over the past couple years ARMs have been given a bad name. If you know how these programs work they can be a terrific way to enjoy reduced housing payments. Contact one of our experts for a complete explanation of FHA ARM products and whether they are the best option for you.

Transaction Types

• Purchase
• Refinance
• Cash Out Refinance

Occupancy Types

• Primary Residence

Property Types

• Single Family Residence and Planned Unit Developments
• Condominium - low rise and high rise (must be HUD approved)
• 2-4 unit properties