FHA Loans

Lowering the bar to own a home.

FHA (Federal Housing Administration) are government insured loans which have different requirements than conventional mortgages. With a minimal down payment option of 3.5%, the FHA makes owning a home reality for many borrowers who don’t have large cash reserves at their disposal. There is also some flexibility in the underwriting guidelines compared to that of a conventional loan. You can have gift funds for the down payment, parents can co-sign on the loan, and they will even go a little higher on your debt to income ratio with good compensating factors. Among the requirements for an FHA loan is mandatory mortgage insurance which adds to the cost of the monthly payment. But borrowers who have less than 20% as a down payment and not the best credit score, the FHA makes it possible to own home.