The Federal Housing Administration (FHA), a branch of the U.S. Department of Housing and Urban Development (HUD) insures this type of mortgage. FHA Loans are more forgiving for those with blemished credit and higher debt ratios. FHA Loans are great for first time home buyers because of their flexibility, although anyone can apply.
For Primary Residence and Secondary residences only
A 3.5% payment is required, which can be gifted
A Seller can contribute up to 6% towards the buyers closing costs.
Requires Mortgage Insurance Premium (MIP) for the life of the loan.
Available for Purchase and Refinance Transactions