REALTORS® and the Federal Housing Administration (FHA), which is part of the U.S.

Department of Housing and Urban Development (HUD), have been partners in creating

homeownership opportunities for more than 70 years. Since FHA was created in 1934, it

has helped more than 34 million families become homeowners, many by working with

their REALTORS® to achieve their dream of homeownership.

This brochure illustrates improvements in FHA programs that will benefit you. Manypects of the FHA mortgage application process have been streamlined to make the

process more user-friendly and efficient. Upon reading this brochure, you will see that

FHA programs are a valuable asset to REALTORS®, other real estate professionals, and

most importantly, those seeking to own a home.

Backed by the full faith and credit of the Federal government, FHA-insured mortgages

are one of the safest and most affordable types of mortgages available to homebuyers.

Working together, REALTORS® and FHA help millions of families come home.

WHAT IS FHA MORTGAGE INSURANCE?

The Federal Housing Administration (FHA) insures mortgages offered by banks, savings

associations, and other financial institutions. An FHA-insured mortgage is backed by the

full faith and credit of the United States government. While FHA does not make loans, it

benefits the homebuyer by providing mortgage insurance which encourages financial

institutions to make affordable financing available.

What are the benefits of an FHA mortgage?

FHA offers low down payment options, eligibility with less than perfect credit, a loan at a

reasonable cost, and help if there is ever trouble making the mortgage payment. Because

an FHA mortgage insures the lender against loss, an FHA mortgage typically has an

interest rate that is competitive with the best in your market and lower than the rates

charged for subprime and other non-prime mortgages.

FHA not only helps people buy a home, but helps them keep it as well. In return for

protecting lenders against loss, FHA requires financial institutions to offer assistance to

borrowers experiencing difficulty making mortgage payments.

WHAT ABOUT ELIGIBILITY?

In order to be eligible for an FHA-insured mortgage, a borrower must:

• Occupy the property as the principal residence;

• Possess a valid Social Security Number;

• Have a two-year employment history;

o School and military service count towards this two-year requirement.

• Not be delinquent on any Federal debt such as a student loan or other FHAinsured

mortgage; and

• Meet flexible credit requirements.

Not Credit Score Driven

Contact Sherida Studwood for additional information 443-757-5000 ext. 109