FHA 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
• Only a 600 credit score is typically needed for the this program
• Co-Signers are acceptable to help with credit, debt ratio and down payment
• Co-signers do not have to occupy the property
• Available on most property types (Single Family, Condo, Townhome, Manufactured Homes)
• 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!