A 30 second anatomy of an FHA loan – 

What you NEED to understand…

FHA loans have two major advantages.

#1 – they allow a purchase loan with only 3% of borrower’s funds in the deal. These funds may come from allowable sources such as mom and dad, employer, church.  They also allow up to 6% seller help.

#2 – They allow cash out refinances to 95% of the value of your house  –  for now anyway.

The myths -  FHA loans are for poor people or clients with terrible credit. NOT TRUE!

Think about it. FHA will allow you to purchase a home with NO MONEY out of your pocket. And FHA offers JUMBO loan amounts as well. FHA is the ONLY program that will allow cash out at 95% loan to value. FHA is the hottest loan program on the market!

FHA has mortgage insurance ---    ok, so what.

Conventional loans over 80% loan to value do as well and the factors are much higher than FHA, which means on loans over 80% loan to value, an FHA loan payment will typically always be lower.

If you are looking into a loan and someone is advising you against an FHA loan, seek advice elsewhere. Understand your options.

             FHA experts