The Benefits of FHA Loans

You may have heard of FHA loans or FHA Mortgages - but do you know what it's about? An FHA Loan is a loan that is guaranteed by the Federal Government. It allows a buyer to put down as little as 3.5% on a property, which is very helpful in our market where home prices can be high. FHA Loans are very common in our area, especially since the zero-down lending market has disappeared, and since the Government raised the limit to as high as $625,000 in some areas.

Other benefits of FHA loans are that they offer relaxed credit score guidelines, lower PMI (Private Mortgage Insurance) than Conventional Loans, and non-occupant co-borrowers. Further, the Seller can contribute a substantial amount toward closing, as much as 6% of the Selling Price.