FHA financing, all the information you need to know and then some.
Being in this industry for over 20 years, 24 actually as I type this blog, I have used FHA Financing for probably 65-70% of all the home buyers I have worked with. On average, I close 40 plus transactions a year, and the bulk of those have been with first time home buyers.
The FHA loan is the most popular government-backed home loan in the country. These low down payment loans are made by qualified lenders and guaranteed by the Federal Housing Administration (FHA).
FHA loans require just a 3.5% down payment for borrowers with a 580 credit score or higher. For homebuyers with less-than-perfect credit, FHA loans offer additional significant benefits. The government backing means average FHA interest rates are typically lower than average rates for conventional mortgages, but this can vary based on the type of FHA loan your obtaining.
Borrowers with credit scores as low as 500 can qualify for an FHA loan with a 10% down payment. Guidelines and policies will vary by lender.
This historic home loan program continues to open the door to homeownership for millions of Americans who might struggle to secure conventional financing.
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