The FHA mortgage loan, whether it’s a refinance or purchase, is a mortgage loan that is insured by the FHA (Federal Housing Administration). The insurance provided by the FHA allows lenders to make the loans at a slightly lower interest rate and usually with more open guidelines when compared to what the borrower would qualify for if they were to take out a comparable conventional loan instead. This is because the lenders are taking on less risk due to the insurance provided by the FHA. There are several potential benefits with the FHA loan over some of the other loan programs out there:
- Lower down payment and equity requirements.
- Lower interest rates for a comparable loan.
- More flexible standards for credit worthiness.
- Fair mortgage insurance payment rates.
- Fix and hybrid adjustable ARM programs available.
With the FHA loan, borrowers are going to be more likely to qualify for home financing. This means there will be people that could qualify for an FHA loan that wouldn’t have access to financing otherwise. This could mean the difference between home ownership and renting an apartment.
Speak with a mortgage professional today and find out if the FHA program is right for you.
FINANCIAL DISCLOSURES: MakeWay Mortgage Inc. is a mortgage broker who is not an agency of the federal government, nor affiliated with your current lender. This is not a commitment to make a loan. All approvals are subject to underwriting guidelines and eligibility. Underwriting guidelines include but are not limited to: debt to income ratio, loan to value ratio, acceptable credit and or income history, property type, current homeowner’s insurance, equity position, property type, number of units, financial reserves, bank statements, financial statements or tax returns, insurance, occupancy type, number of financed properties, Debt Service Coverage Ratio, rent history, taxes, etc. Call to secure your pricing today!