If you’d love to buy a home but lack credit, a down payment, or are unable to cover closing costs, an FHA loan may be the solution.
FHA financing was developed to provide homebuyers with an alternative to conventional financing and include attractive and flexible guidelines.
Benefits of an FHA Loan
- Low 3.5% down payment
- 100% gift funds – the entire 3.5% down payment can be a gift from parents, relatives or an employer.
- FHA allows seller to give up to 6% of the home’s purchase price to an FHA buyer to pay for closing costs and pre-paid costs.
- Flexible credit qualifying – because it is government-backed, it’s possible to qualify for an FHA loan with a lower credit score than on conventional loan programs
- Upfront mortgage insurance may be financed or paid in cash.
- May also be an option for borrowers with limited equity looking to refinance.
- Ability to choose from a fixed-rate or adjustable rate