Friday, March 22, 2013

What is an FHA loan?


What is An FHA Loan?

A Federal Housing Administration (FHA) loan is a mortgage guaranteed by the U.S. government.  The FHA was created to help homebuyers with less than perfect credit or those who don't have a lot of cash for a down payment.

A conventional loan typically requires a 10% down payment where an FHA loan is 3 1/2% down.  You can see why these have become very popular, especially with first time buyers.  Other requirements are usually easier to meet also.

Give me a call and I'll give you some names of lenders who can determine if an FHA or other type of loan program is the best fit for you.

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