FHA Home Loans

A FHA loan is a federal assistance mortgage loan insured by the Federal Housing Administration.

FHA loans have historically allowed lower and moderate income home buyers to borrow money for the purchase of a home that they would not otherwise be able to afford.

The program originated during the Great Depression of the 1930s, when the rates of foreclosures and defaults rose sharply, and the program was intended to provide lenders with sufficient insurance.

Over time, private mortgage insurance companies came into play, and now FHA primarily serves people who cannot afford a conventional down payment or otherwise do not qualify for private mortgage insurance. The program also help by lowering some of the costs involved with buying a home.

On August 31, 2007, the FHA added a new refinancing program called FHA-Secure to help borrowers hurt by the 2007 subprime mortgage financial crisis.

Some benefits of a FHA Mortgage
  • Reduce down payments to as little as 3 percent.
  • Many closing costs can be refinanced.
  • Some fees are limited, such as the loan origination fee may not exceed 1 percent of the amount of the mortgage.

Please contact a local Help-U-Sell Office now to learn more.