FHA Loans are government backed mortgages insured by the Federal Housing Administration. Due to the loans being insured by the government, FHA lenders offering FHA Mortgage Products are able to offer attractive loan options. FHA Loan Requirements are much easier to qualify for with lower credit scores needed, and higher debt to income ratios accepted. FHA Mortgages offer low down payment options at 3.5 percent down as opposed to many conventional mortgages requiring 20 percent down. As a low down payment mortgage option, the First Time Home Buyer Loans, are often a great option for first-time homebuyers to make homeownership affordable.
The FHA is part of the US Department of Housing and Urban Development also known as HUD.
FHA Loan Requirements
FHA Loan requirements are easier to qualify for than many traditional mortgage loan requirements. Because the loans are insured, lenders can low rates, low down payments, and be less strict on credit qualification.
FHA Lenders are lenders that offer FHA Loan Products. Many banks and credit unions offer Federal Housing Administration loan products. Prior to getting pre-qualified and getting a mortgage prequalification letter, buyers should ask their potential lenders if they offer FHA Loan products. If the current lender does not offer these types of products, buyers might consider searching for FHA lenders. Comparing offers from FHA lenders before deciding which lender to choose can help to get the best options.
First Time Home Buyer Loans
First time home buyer loans offer buyers loan down payment options as low as 3.5 percent down. Properties purchased can be from one to four-unit properties. Down payments are lower, however, buyers should be aware of the upfront cost of Mortgage Insurance Premium (MIP) when putting less than 20 percent down.
How to Apply for Federal Housing Administration Loan Products
If you are considering using a government-backed Home loan insured by the Federal Housing Administration to purchase your home, search and compare lenders offering the loan products. You might consider checking with your local banks and credit unions in the area. If you are unable to find a lender in the area offering Federal Housing Administration Loan products, you can Search for FHA lenders in Missouri. We suggest getting as much information as possible from lenders. Then compare the options with pros and cons to see which lender offers the best terms for your situation. After having reviewed different options, then contact the selected lender and proceed to the next step. Buyers can also contact HUD to ask questions and to get advice from a HUD-approved counselor.