FHA Loans

The FHA Loan Program Was Created to Help Increase Home Ownership

The Federal Housing Administration (FHA) is a United Sates Government Agency Created by the National Housing Act of 1934.

The "FHA", provides mortgage insurance on loans made by FHA-approved lenders. The FHA insures mortgages on single family and multifamily homes including manufactured homes and hospitals.

  • FHA mortgage insurance provides lenders with protection against losses from homeowners defaulting on their loans.

  • The lenders bear less risk because FHA will pay a claim to the lender in the event of a homeowner's default.

  • Loans must meet certain requirements established by FHA to qualify for insurance.

How is FHA Funded?

The FHA is the only government agency that operates entirely from its self-generated income and costs taxpayers nothing. The proceeds from the mortgage insurance paid by homeowners is stored in an account that is used to operate the program. The FHA also provides a huge economic stimulus to the country in the form of community development.

Benefits of the FHA Loan Program

These benefits of the FHA loan program have made it one of the best options for most first time home buyers.

  • The 2022 loan limits for one-unit properties will be $647,200

  • Minimal Down Payment and Closing Costs

  • 100% Financing options available

  • Gift for down payment and closing costs allowed

  • No reserves or required

  • FHA regulated closing costs

  • Seller can credit up to 6% of sales price towards buyers costs

  • Easier Credit Qualifying Guidelines

  • Debt-to-income (DTI) ratio expanded with cosigner

FHA loans are also more widely available for borrowers who have either filed for bankruptcy or foreclosure. On a conventional loan, seven years must pass before you will be eligible for refinancing. But with FHA loans, only three years need to pass. If a borrower has filed for bankruptcy, at least four years must pass before applying for a conventional loan. Under FHA, only two years are required.

 

I will guide you through the various options on the market and help you find the right mortgage for you.

Whether you are a first time buyer, looking to refinance, looking for your dream home, or downsizing an empty nest – put my 34 Years of Industry Experience to work for you.