FHA Loans
What exactly is an FHA Loan?
The purpose of an FHA loan is to provide mortgage insurance for someone to buy or refinance a principal/primary residence. The loan is funded by a traditional lending institution like a mortgage company or bank and the loan is insured by HUD.
There are specific eligibility requirements:
- The borrower must meet standard FHA credit qualifications.
- The borrower is eligible for approximately 96.5% financing. The borrower is able to finance the upfront mortgage insurance premium into the mortgage. The borrower will also be responsible for paying an annual private mortgage insurance (PMI) premium.
- Eligible properties are one-to-four unit structures.
- Learn more about the mortgage limits in your area.