FHA LoansMortgage loans insured by the Federal Housing Administration are known as FHA loans.
An FHA mortgage is fully insured by the Federal Housing Administration under the U.S. Department of Housing and Urban Development (HUD). The main initiative of FHA is to lower the barrier of home ownership by decreasing up-front financing costs. Approved FHA lenders, such as Starboard Financial, are able to offer lower down payments because there is less risk due to the government insurance.
Credit qualification guidelines are often easier than other underwriting standards, which allows more people access to the program. This benefit does not come without limitations, as availability is subject to income and primary residency restrictions. Loan amounts are subject to ceilings as well. FHA loans are eligible for both refinance and purchase transactions.
Benefits of a FHA Loan
- Low down payments – as little as 3.5%
- 100% of down payment available from a gift
- Higher debt to income ratios available in most cases
- Lower credit scores welcome
- Waiting periods less following Bankruptcy, Foreclosure, or Short Sale
- Reduced documentation on FHA streamlined refinances
Contact Us today if you would like to discuss FHA Loan Products further or if you have any inquiries about our product offerings. If you do not have any questions and are ready to submit your information for a loan decision, please Apply Now.
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