The Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD), offers a federal guarantee for mortgages that meet specific requirements. Lending rates for these FHA loans are lower when compared to loans without a federal guarantee.


Easy Qualify, Low Down Payment, and Closing Costs

An FHA insured loan is easy to qualify for, may have a lower down payment, and usually has higher closing costs than a conventional loan.

Frequently Asked Questions about FHA Loans

A down payment of 3.5% may be all that is needed for FHA mortgage financing.

Borrowers with a FICO credit score as low as 500 may be able to qualify for a FHA loan.

FHA loans require mortgage insurance to protect the lender in the case of a default. This makes them more expensive when compared to a conventional loan with a 20% down payment that does not require mortgage insurance coverage. For those that can make a 20% down payment or larger, a conventional loan may be a better choice with lower costs and fewer provisions.

To meet occupancy rules a person must live in a house that has a FHA mortgage for at least one year after the home purchase. After that, the home may be rented to others without disturbing the FHA loan.

There are no minimum or maximum income amounts for FHA loans.

We work with our clients to help them benefit from all of the FHA programs available and get any extra assistance they may qualify for, in order to help them buy a home.

Understanding all of these government programs is a complex undertaking. Working with the OKavage Group makes it easier to navigate all the rules of these programs in order to make sure that the documentation is done correctly to get the best loan terms that are available.