At Fidelity Home Group, we are Florida FHA Loan Experts. We offer more options, more transparency and a simpler way to find the right mortgage program for your unique situation.
An FHA loan is a type of mortgage that is insured by the Federal Housing Administration (FHA), which is a government agency within the U.S. Department of Housing and Urban Development (HUD).
FHA loans are designed to help people who may not be able to qualify for a conventional mortgage, such as first-time homebuyers, those with lower credit scores, or those who cannot afford a large down payment.
One of the key features of an FHA loan is that it requires a lower down payment than many other types of mortgages. In general, borrowers may be able to put down as little as 3.5% of the purchase price. Additionally, FHA loans often have more lenient credit score requirements and may be more accessible to those with a history of bankruptcy or foreclosure.
However, it’s important to note that FHA loans also come with some drawbacks. Borrowers are required to pay mortgage insurance premiums (MIP) for the life of the loan, which can increase the total cost of the loan. Additionally, there are limits on how much you can borrow with an FHA loan, and the property you purchase must meet certain standards.