What is FHA Loan?
Want to know what is FHA Loan?
The Federal Housing Administration’s loan programs enable more buyers to qualify for a mortgage. With more flexible credit guidelines, FHA mortgages can be a viable choice for first time buyers, buyers with less than perfect credit, self-employed buyers, buyers with limited liquid assets for a down payment or buyers with short or interrupted employment histories.
FHA loans can also be used to refinance an existing mortgage. The down payment on an FHA loan can be as low as 3.5% of the purchase price. To reduce the amount of cash needed at closing, the upfront mortgage insurance premium can be included in the mortgage. Borrowers are also responsible for paying monthly mortgage insurance premiums.
Additional information can be found at hud.gov