FHA Mortgage

 

FHA loans are mortgages insured by the Federal Housing Administration (FHA).  Before FHA was established, it was only common for homeowners to put a 20% down payment when purchasing a home.  FHA was established to help borrowers obtain a mortgage that otherwise would have trouble qualifying.  

Benefits of a FHA Mortgage include:

  • Require a down payment of 3.5%
  • Gift funds for down payment are allowed
  • Reduced mortgage insurance