FHA
LOANS
FHA Loans (Federal Housing Administration) are a perfect option for borrowers that may otherwise not be able to qualify for a mortgage. These government-backed loans offer a very low down payment, even for borrowers with less than ideal credit. This is one of the most flexible loan programs on the market, and this is the standard by which all other low down payment and first-time buyer programs are compared. ​
Here are some of the key features of an FHA Loan:
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Only 3.5% down payment is required in most cases, allowing for 96.5% of the loan to be financed.
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The loan is government backed, so the interest rate is low.
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Traditional and non-traditional credit histories are considered.
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Poor credit history doesn't necessarily mean you aren't qualified.
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It's a 30 year fixed-rate program.
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Closing costs are standardized (in many cases the seller can pay the closing costs).
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Reserves are not required.
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There are no restrictions on gift funding.
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New or existing construction is acceptable.
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It is not restricted to first time home-buyers.
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There are never any pre-payment penalties.