FHA Loans

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• FHA loans are mortgages insured by the Federal Housing Administration and are designed to provide qualified borrowers with a flexible path to homeownership. 
• With lower minimum down-payment requirements and more flexible qualification standards than some conventional loan programs, FHA financing can be worth considering for first-time and repeat homebuyers alike.

• An FHA loan is issued by an approved mortgage lender and insured by the Federal Housing Administration. Because of this federal insurance, lenders may be able to offer financing to borrowers who might not meet the requirements of certain conventional loan programs. 
• FHA loans can be used to purchase qualifying primary residences, including many single-family homes and certain approved multi-unit properties.

• Lower Down-Payment Options
  Qualified borrowers may be eligible for an FHA loan with a down payment as low as 3.5%.
• Flexible Credit Requirements
  FHA guidelines can provide greater flexibility for borrowers with less-established or imperfect credit histories.
• Gift Funds May Be Allowed
  Eligible gift funds may be used toward certain down-payment and closing-cost requirements, subject to FHA guidelines.
• Fixed and Adjustable-Rate Options
  Depending on the lender and program, FHA financing may be available with different mortgage structures.

• One important difference between FHA and conventional financing is mortgage insurance.
• FHA loans generally require an upfront mortgage insurance premium (UFMIP) as well as an annual mortgage insurance premium (MIP) paid through the borrower's monthly mortgage payments.
• The amount and duration of mortgage insurance depend on the loan's characteristics and applicable FHA requirements.

• An FHA loan may be worth exploring if you're a first-time homebuyer, have limited funds available for a down payment, are rebuilding or establishing credit, or simply want to compare FHA financing against your conventional options.
• FHA isn't automatically the best choice just because you qualify for it. We can compare your available options and help you understand the differences.

Do I have to be a first-time homebuyer?

• No. FHA loans are available to eligible first-time and repeat homebuyers.

Can I use an FHA loan for an investment property?

• FHA financing is generally intended for a borrower's primary residence and includes occupancy requirements.

Can someone help with my down payment?

• FHA guidelines permit certain eligible sources of gift funds, subject to documentation and program requirements.

Does an FHA loan require mortgage insurance?

• Yes. FHA loans generally include both upfront and annual mortgage insurance premiums.

Every borrower is different. Let Primary Lending Group help you compare FHA financing with your other mortgage options. Contact us today to explore which option may be right for you.