FHA Loans (Federal Housing Administration Loans)

FHA Loans ImageFHA loans are mortgages issued by federally qualified lenders and insured by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development.

FHA loans are an attractive, maximum financing option, especially for first-time homeowners.

Raleigh Mortgage Group works with a number of FHA lenders. Some of the advantages of an FHA loan are:

  • Generally easier to qualify for than Conventional loans
  • Only 3.5% down payment (The 3.5% can be gifted from a family member)
  • Allows for higher debt ratios in most cases
  • Typically a 580 credit score is needed for the this program
  • Maximum loan size varies by county (call for details)
  • No income limits
  • Co-Signers are acceptable to help with credit, debt ratio and down payment
  • Co-signers do not have to occupy the property
  • Available on all property types (Condos need FHA approval)
  • Can be used to purchase duplex, triplex and quad properties where you can rent the other units (only 3.5% down)
  • The loan is assumable when it comes time to sell
  • If the home doesn’t appraise then you are able to receive your earnest money back
  • Interest rates are typically lower than a conventional loan
  • Shortest waiting period after having a prior Bankruptcy, Foreclosure or Short Sale
  • If purchasing an FHA Foreclosed home, you can get by with only $100 down
  • Loan offers a low documentation streamline refinance option if rates improve

For more information, please call Raleigh’s Local Loan Experts at 919-866-0212 to answer any questions you may have!