Federal Housing Administration (FHA) Loans
FHA loans have been helping Minnesotans become homeowners since 1934. The Federal Housing Administration (FHA), which is part of HUD, insures the loan, so your lender can offer you a better deal. This is a great program and allows many buyers to purchase their first home.
Hundreds of millions of dollars in down payment help is out there. We help you find it! Just answer a few questions about your household and see how many programs may match your circumstances. CLICK HERE to check your eligibility!
Not sure if your current finances will let you qualify for a mortgage? A FHA mortgage could be your solution. Run by the Federal Housing Administration, FHA home loans were created to make it easier for home owners to qualify for a loan.
Who is an FHA Loan Best For?
FHA home loans can benefit almost all home buyers and refinancers – first-time home buyers, military families, lower-income families and homeowners who don’t want to tie up a lot of cash in their homes. FHA mortgages are great for people who desire a secure government-insured home loan, while also needing to finance more than 80% of their home value. Check in with a home loan expert or call us at (763) 657-0198 to review your options.
What Are The Benefits of a FHA Loan?
Qualifying for a FHA loan is less difficult than other loan options. With a FHA mortgage, you can buy a home with a down payment as small as 3.5% and lower credit scores. There are also no income limits for a FHA loan, which you might find with other programs. With an FHA loan, you are able to use gifts (such as borrowed money or a monetary gift from a family member) towards down payments and closing costs. There are no prepayment penalties with a FHA mortgage, allowing you to refinance or pay off your home early without having to worry about paying an extra fee.
Why use FHA?
There are lots of reasons to ask your lender for an FHA loan instead of taking a conventional loan. FHA loans have many benefits and protections so why not take advantage of them! FHA loans are:
- For Everyone – FHA isn’t just for a first time buyer. Anyone can qualify for one and you could have many FHA loans in your lifetime. One caveat, you can only have one FHA loan at a time – unless you meet one of the exemptions.
- Offers Higher Loan Amounts – It used to be that FHA was always low on their loan amounts. Currently, the maximum FHA loan amount is $365,000 which can buy a lot in today’s market.
- Easier to Qualify - Since FHA insures your mortgage, lenders are more willing to give loans with lower qualifying requirements so its easier for you to qualify.
- Less than Perfect Credit - Even if you have had credit problems, such as bankruptcy, its easier for you to qualify for an FHA loan than a conventional loan.
- Low Down payment - FHA requires a low 3.5% down payment. The money can come from a family member, employer or charitable organization. Most other loans don't allow this.
- Costs Less - Many times, FHA loans have more competitive interest rates because the loans are insured by the Federal Government. Always compare an FHA loan with other loan types.
- Helping You Keep Your Home - FHA has been around since 1934 and will continue to be here to protect you when the others walk away. Should you encounter hard-times after buying your home, FHA has many options to help keep you in your home and avoid foreclosure. There is more to buying your home then the monthly house payment!