FHA Loans
Unisource Mortgage Services, Inc.
The Federal Housing Administration, or FHA, insures mortgages made by FHA-approved lenders. In the United States and its territories, FHA guarantees these loans on single-family and multi-family homes. It is the world's largest insurer of residential mortgages, having insured tens of millions of properties since its inception in 1934.
These loans were made for first-time homebuyers and are backed by the Federal Housing Administration. They are usually easier to get than traditional loans, with lower credit scores and more debt-to-income ratios allowed. As little as 3.5% down is required for FHA home loans, but they also require an upfront mortgage insurance fee that can be paid with the loan, and monthly mortgage insurance. These fees can be paid with the loan. The amount of the down payment and the length of the loan affect how much you pay at the start and how much each month. There must be at least a 3.5 percent down payment for these rates to apply. They are currently at 1.75 percent for the front premium and 0.85 percent for the monthly mortgage insurance premium.
Benefits Of FHA Loans
- Borrowers with poor or no credit who are unable to obtain traditional loans may qualify for an FHA loan.
- Lower down payment requirements.
- Less than perfect credit is not disqualifying
- Credit that is less than perfect is not a disqualifying factor.
