FHA Loans are backed and insured by the U.S. government under The Federal Housing Administration (FHA), a division of the U.S. Department of Housing and Urban Development (HUD). Because FHA loans are backed and insured by the U.S. government they require lower down payments and may have more lenient standards concerning a borrower’s credit history and debt to income ratio.
FHA loans are popular with first-time homebuyers because they allow the borrower to put as little as 3.5% down.
Additionally, FHA Loans allow us to provide the borrower(s) with as much as 3.5% lender credit to be utilized toward the borrower’s closing costs. The lender credit will result in a higher interest rate but these funds may prove to be an invaluable necessity to make the new home purchase possible when no Seller credits are available because of today’s Seller’s market. Contrary to popular belief and some lender claims FHA Loans do not take any longer to process when you’re obtaining your FHA Loan with Florida State Mortgage Group, Inc.
Think a FHA loan might be right for you? Feel free to contact us to discuss FHA loans with one of our loan experts.