The Federal Housing Administration (FHA) backs loans for existing or new home purchases, as well as programs for home repairs.
What is an FHA loan?
The FHA is a government agency inside the U.S. Department of Housing and Urban Development. An FHA loan is a mortgage insured by the Federal Housing Administration.
Borrowers with FHA loans pay for mortgage insurance, which protects the lender from a loss if the borrower defaults. Because of that insurance, lenders offer borrower-friendly FHA mortgage rates, and, like the VA loan, the FHA allows lenders to be flexible when considering applicants.
How much is the down payment on an FHA loan?
An FHA loan requires a down payment of 3.5%. That is significantly smaller and more affordable than many other loans, especially for first-time homebuyers.
Where can my FHA down payment come from?
You can make the down payment with your own savings or other income. Borrowers can also use cash gifts from relatives, government grants, or down payment assistance programs, which is not always an option with other types of loans.
Can an FHA loan pay for home repairs?
Yes. Along with FHA home loans, the FHA offers loan products for home repairs. The 203(k) loan focuses on the projected value of the home once repairs are completed rather than its current appraised value, so you can finance repairs such as home fixtures, painting and other replacement expenses.
Talk to a Longview mortgage broker
Every borrower's situation is different. Call Kenneth Travis's team at 903-331-0892 to talk through fha loans and the rest of your options, or apply online.