FHA Home
Loans.
Welcome to your new home.
Let's start.
Ready to start the loan process? Click the link below and we will be in touch to start your loan process.
A common misconception of an FHA loan is that it is funded by the US Government, when in fact, it’s a mortgage loan funded by the same banks that fund Conventional Loans. What makes a loan an “FHA” loan is that the mortgage will be insured by the Federal Housing Authority (FHA) in the event of default. Meaning, that if an FHA borrower were to be foreclosed upon, the FHA would compensate the mortgage investor or any incurred loss resulting in sale of the said property. This insurance allows the mortgage lender to be more lenient with borrowers in terms of credit scores, employment history, debt to income (DTI) ratios, asset requirements, loan to value ratios (LTV), and borrowed funds for down payment. There is a cost associated with this insurance called a Mortgage Insurance Premium (MIP). Another misconception is that FHA loans are ONLY for first time home buyers, and low income borrowers. In actuality, many FHA loans are giving to borrower with existing mortgages, and there is also no income limit for an FHA borrower. The current minimum down payment for an FHA insured mortgage is 3.5%, and the maximum loan size varies by County. FHA loans are also strictly specific to primary residence properties.