FHA loans encourage home ownership and provide affordable housing opportunities with low down payment and flexible credit requirements.  The program originated during the Great Depression of the 1930s, when the rates of foreclosures and defaults rose sharply, and the program was intended to provide lenders with sufficient insurance.  While most people believe that the FHA lends money directly to borrowers, it actually just insures a certain type of loan that is financed by traditional banks and mortgage lenders.

Some benefits of the FHA Home Purchase Program include:

* Borrowers can buy a one to 4 unit property (owner-occupied)
* Flexible credit requirements
* Only a 3.5% down payment required
* Down payment may be a gift from a relative
* Minimum credit score as low as 620 (varies by lender)
* Available for “FHA approved” condominiums

Please note that this program is not generally available for mobile or manufactured homes with most lenders.

With favorable loan terms, 30-year fixed repayment, and flexible down payment options, FHA will continue to encourage home ownership, providing liquidity and stability to the mortgage market.  We encourage you to read about the home buying process or to contact us if you have questions.  To get started now, simply complete our online pre-approval application.