What is an FHA Loan?
An FHA Loan is insured by the Federal Housing Administration, a Federal Agency within the U.S. Department of Housing and Urban Development (sometimes referred to as the "HUD"). An occasional misconception, the FHA themselves do not actually loan money to borrowers. The loans still come from the Lender, however the FHA provides valuable aid to Homebuyers in other ways. Okay, So What Does the FHA Do?The FHA provides Lenders with protection through a mortgage insurance premium (MIP) in case the borrower defaults on his or her loan obligations. In turn, this insurance provides greater peace of mind for the Lender, who then has greater confidence to issue the loan. Since 1934, FHA Loan programs have been designed to help creditworthy low-income and moderate-income families who do not meet requirements for Conventional Loans.
FHA Loan programs are particularly beneficial to those buyers with less available cash, since they only require as little as 3.5% down compared to as much as 20% down for other loan programs.
What Are Some Benefits of FHA Financing?
Please visit the links below for the maximum FHA Mortgage Amounts listed by county and State.
FHA Maximum Loan Amounts
Hello and thanks for stopping by! Please provide your contact info in the fields below and include a short note with any questions you have. Someone from the Leading Edge Team will get back to you within minutes!