FHA home loans feature low down payments and flexible guidelines to make it easier to qualify! FHA loans are popular with first time homebuyers but they can be equally attractive to move-up buyers and homeowners looking for a home improvement loan. FHA loans are extremely attractive because they allow prepayments without penalty and feature low down payments.

Why choose an FHA-insured loan?

There are lots of advantages of FHA loan, above all, if one or more of the following apply to you:

3-5% down payment only.
Can qualify for loan two years after bankruptcy.
Can qualify for loan three years after foreclosure.
Higher qualifying Ratios (lower income accepted)
Ability to finance all closing costs
Right to repay loan without prepayment penalty

If any of these things describe you, then an FHA loan may be right for you.

Things to know before going for a FHA loan:

The mortgage insurance premium paid on an FHA loan can be higher than on standard conventional financing
The property must meet certain minimum property standards as designated by FHA
Borrower can have no more than one FHA loan limit at one time
Appraisals may require some repair to be done prior to closing

FHA Mortgage Closing Costs

Buyers and Sellers alike in an FHA real estate transaction often ask just what mortgage closing costs and who is responsible for. Obviously, lender fees vary nationwide, but there are a few guidelines regarding who can pay for what in an FHA mortgage transaction: The fees listed below are fees which can be charged to the Buyer or Borrower in the transaction.