Why Choose FHA Loan?

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FHA Loans are insured by the Federal Housing Administration. Having a loan that is insured by a Government Agency allows a bank to become more flexible with their underwriting standards thereby increasing mortgage lending available to borrowers that otherwise would be non-existent. Non-Government loan programs have higher credit and income standards that restrict lending. This level of restriction on non-government loan programs tends to increase the number of denied loan applicants. Luckily, FHA Loans come to the rescue.

Since the FHA Loan is inured by a Government Agency and reduces a lender’s risk, it not only aids lenders in becoming more flexible in their underwriting standards (as noted above), but it also allows lenders to originate loans at more competitive interest rates. The reduced lender risk is a benefit that is passed back to the borrower in the form of lower interest rates. This value add to the consumer propels the FHA Loan into to a superior loan program for most consumers.

The Federal Housing Administration has generously set the minimum down payment requirement at 3.5%. This is one of the lowest down payment options available in the mortgage market.

So why choose FHA?

  1. Flexible Credit Standards
  2. Low Interest Rates
  3. Low Down Payment (3.5%)
  4. Mortgage Loan Insured by a U.S. Government Agency.

FHA Mortgage