Released January 17, 2017
- The Federal Housing Administration (FHA) offer government-insured mortgage loans. Mortgage insurance provided by FHA protects the lender if a borrower defaults on the FHA loan.
- If you choose an FHA product, you will pay a mortgage insurance premium (MIP) down payment at closing and on a monthly basis until the loan-to-value (LTV) reaches the prescribed limit.
- Since MIP is required it allows a lender to provide more flexible benefits and varying programs which include, but are not limited to:
- low down payments;
- no maximum earning limits;
- flexible credit guidelines;
- flexible income guidelines; and
- ARM and Fixed rate loans (maximum mortgage term may not exceed 30 years from the date that amortization begins. In the case of adjustable rate mortgages (ARMs), the term must be for 30 years).
- Maximum loan amounts vary by county;
- Minimum credit score is required;
- Not all requestors will qualify.
- Property value restrictions apply.