What exactly is an FHA loan?

Good question. An FHA loan isn't really a loan, it's a program that insures home loans. The FHA (Federal Housing Administration) doesn't actually fund your home loan in any way. The FHA simply provides mortgage insurance to help consumers become homeowners. In other words, the FHA insures lenders from losses associated with homeowner default. This helps mortgage lenders prepare mortgages for people who might not otherwise qualify for a loan. That's pretty much it. To keep things simple, we (and most other mortgage lenders) call any loans insured by the FHA, "FHA Loans." Or in our case, the FHA Express.

Should I get an FHA loan?

Do you want to buy a house with a small down payment? Are you a first-time home buyer? Do you have lower credit or even no credit? Are you concerned that you don't make enough money to qualify for a home loan and cover all expenses? If any of these are true, an FHA loan may be a great solution for you. Even if you have good credit and a down payment, the increased options of FHA home loans make them attractive choices for your mortgage.

Buy a home with a very small down payment

A great point about FHA loans is that you can buy a house with a tiny down payment - only 3% down payment required to be exact - until January 1, 2009 when the minimum down payment rises to 3.5%. That's one of the lowest down payments for any mortgage loan offered in today's economy.

Lower credit? Don't worry!

With the FHA, credit may not be an issue. Lower credit scores may be ok - our mortgage bankers look at each application on a case-by-case basis. It is also may be possible for people with no established credit to receive a loan with this program. That's why the FHA Loan is an attractive loan to folks who think they probably can't qualify for a mortgage. Don't assume anything. Get in touch with us and we'll do a check of your situation and get you into the best loan possible.

The first choice for first-time home buyers

The FHA Loan is a great way for first-time home buyers to buy a home. The FHA permits borrowers to have a higher debt-to-income ratio than most insurers typically allow. In other words, you can get more home with the FHA Express than with a conventional loan. And with only a three percent down payment, the FHA Express is ideal for people without large savings accounts to afford getting a home. Stop throwing your money down the drain and into your landlord's pocket. You deserve the benefits (lower taxes, equity, investment potential, piece of mind) that homeownership offers. Call us today at (800) 476-7376.

Think you make too much money to qualify for the FHA loan? Think again!

There are no maximum income levels with FHA programs. Many homebuyers mistakenly believe there are maximum income levels that prevent them from qualifying for a FHA loan. Not true. There are county-specific maximum home loan amounts however; borrowers should check with their mortgage banker to learn the specific requirements for the county in which they are financing the house.

If you still have questions, please call us at (800) 476-7376 to talk to a home loan expert today. We can help you determine which option is best for your situation.

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