FHA Loans are the most widely used financing tools, and as a result, have their own section on our web site – the FHA Loan Center. Created by the federal government, FHA loan programs insure loans to limit risk and lower interest rates to increase the willingness of lenders to make loans under more relaxed guidelines, thus encouraging homeownership. There are maximum loan amounts under FHA and a borrower may only have one FHA-insured loan.

Benefits of a FHA mortgage include:

• A 3% down payment, as opposed to a 5% down payment on traditional loans
• Low monthly mortgage insurance
• Low closing costs, which are regulated by HUD
• No credit score requirements
• Qualify for a loan two years after a bankruptcy
• Qualify for a loan three years after a foreclosure