An FHA loan is a mortgage issued by an FHA-approved lender and insured by the Federal Housing Administration (FHA). FHA loans allow financing flexibility for borrowers with lower down payments and credit scores.
FHA Financing Advantages:
- 30-Year Fixed Rate, low down payment mortgages
- Owner-occupied, 1- to 4-family properties: finance up to 96.5% of property value
- Credit scores as low as 620
- Rate quoted is with no discount points
- Loan amounts to $822,375 depending on property location: the Base Loan Amount cannot exceed the FHA Statutory Mortgage Limits for each county