{"id":1330,"date":"2016-08-17T07:22:27","date_gmt":"2016-08-17T13:22:27","guid":{"rendered":"http:\/\/wrkstnblog01\/?p=1330"},"modified":"2024-01-04T16:07:06","modified_gmt":"2024-01-04T23:07:06","slug":"what-is-an-fha-loan","status":"publish","type":"post","link":"https:\/\/www.richmondamerican.com\/blog\/what-is-an-fha-loan\/","title":{"rendered":"What is an FHA Loan?"},"content":{"rendered":"<p>If you\u2019re buying your first home, you\u2019ve probably already heard that an FHA loan is THE loan for you. While it\u2019s true that FHA-insured mortgages are an attractive option for many new buyers, it\u2019s not the only option\u2014and FHA loans are not just for first-time homebuyers! Check out our FHA FAQ below, then be sure to check out our articles about the <a href=\"https:\/\/www.richmondamerican.com\/blog\/a-simplified-guide-to-mortgage-options\/\" target=\"_blank\" rel=\"noopener noreferrer\">other mortgage options<\/a> on the market.<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-5795 size-full\" src=\"https:\/\/www.richmondamerican.com\/blog\/wp-content\/uploads\/2011\/10\/did-you-know2-1.png\" alt=\"FHA facts\" width=\"323\" height=\"464\" srcset=\"https:\/\/www.richmondamerican.com\/blog\/wp-content\/uploads\/2011\/10\/did-you-know2-1.png 323w, https:\/\/www.richmondamerican.com\/blog\/wp-content\/uploads\/2011\/10\/did-you-know2-1-209x300.png 209w\" sizes=\"(max-width: 323px) 100vw, 323px\" \/><\/p>\n<h2>How do I get a home loan from the Federal Housing Administration (FHA)?<\/h2>\n<p>You don\u2019t! The FHA doesn\u2019t actually loan money to homebuyers. Instead, it insures private lenders, such as\u00a0<a href=\"http:\/\/www.homeamericanmortgage.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>HomeAmerican Mortgage Corporation<\/strong><\/a>, against loss if the buyer defaults on the mortgage. An FHA-approved lender still has the final decision of whether or not to loan the buyer money, but having the FHA insurance can help them in making their loan decision.<\/p>\n<h2>Who can get an FHA loan?<\/h2>\n<p>First-time buyers, repeat buyers, homeowners looking to refinance\u2014anyone who can meet the minimum program requirements is eligible for an FHA loan. Generally, that means you must be able to prove:<\/p>\n<ul>\n<li>Your total monthly mortgage payment will be less than 31% of your monthly income. You should note that your monthly mortgage payment will include your Principal, Interest, Taxes and Insurance (or<a href=\"https:\/\/www.richmondamerican.com\/blog\/what-is-piti\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong> PITI<\/strong><\/a>), plus monthly mortgage insurance.<\/li>\n<li>You have a satisfactory credit history showing your commitment to maintaining and paying off debts in a timely manner. FHA credit guidelines are generally less strict than traditional mortgages, making FHA loans desirable for many homebuyers.<\/li>\n<li>You\u2019re a legal resident of the United States.<\/li>\n<\/ul>\n<p>Your lender may have additional requirements that apply to you, your down payment and the property you\u2019re buying.\u00a0 The maximum loan amount must meet FHA requirements.<\/p>\n<h2>What makes FHA loans attractive?<\/h2>\n<ul>\n<li><strong>Low down payment:\u00a0<\/strong>Borrowers may only need a 3.5% down payment, rather than the 10% or even 20% you may have heard you need. <a href=\"https:\/\/www.richmondamerican.com\/blog\/frequently-asked-questions-using-gift-funds-to-buy-a-home\/\" target=\"_blank\" rel=\"noopener noreferrer\">This money may be a gift<\/a> from a family member or other source.<\/li>\n<li><strong>Closing costs may be lower:\u00a0<\/strong>The program allows for up to 6% in seller contributions to help cover customary closing costs.<\/li>\n<li><strong>Flexible qualification:\u00a0<\/strong>FHA guidelines have more flexible requirements than conventional programs. More flexibility means more borrowers may obtain financing.<\/li>\n<li><strong>Less than perfect credit:\u00a0<\/strong>FHA loans are often more forgiving of a buyer\u2019s credit history. Approval is based on a variety of factors, including credit history, credit scores, employment history and income. You may still be able to qualify if you\u2019ve had a bankruptcy as recently as two years ago.<\/li>\n<li><strong>Term options:\u00a0<\/strong>FHA loans are typically fixed rate, but adjustable-rate loans are also available.<\/li>\n<\/ul>\n<h2>What\u2019s the down side?<\/h2>\n<p>You should expect to pay both upfront and monthly mortgage insurance premiums to mitigate the risk to both the FHA and your lender.<\/p>\n<h2>How can I learn more?<\/h2>\n<p>Contact our affiliate,\u00a0<strong><a href=\"http:\/\/www.homeamericanmortgage.com\" target=\"_blank\" rel=\"noopener noreferrer\">HomeAmerican Mortgage Corporation (HMC)<\/a><\/strong>\u00a0to learn about current programs and find out how to qualify. Call a loan officer toll-free at 866-400-7126 today!<\/p>\n<div id=\"nopin\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>If you\u2019re buying your first home, you\u2019ve probably already heard that an FHA loan is THE loan for you. While it\u2019s true that FHA-insured mortgages are an attractive option for many new buyers, it\u2019s not the only option\u2014and FHA loans are not just for first-time homebuyers! Check out our FHA FAQ below, then be sure [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5805,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"ub_ctt_via":"","cybocfi_hide_featured_image":"","footnotes":""},"categories":[4],"tags":[150,206],"featured_image_src":"https:\/\/www.richmondamerican.com\/blog\/wp-content\/uploads\/2016\/08\/Homeward_FHALoans.jpg","author_info":{"display_name":"rahblogadmin","author_link":"https:\/\/www.richmondamerican.com\/blog\/author\/rahblogadmin\/"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\r\n<title>What Are FHA Loans and How Are They Beneficial?<\/title>\r\n<meta name=\"description\" content=\"FHA loans are not just for first-time homebuyers! 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