FHA Home Loan Guarantee Program
- FHA loans offer a loan guarantee for mortgage companies. If you acquire a FHA loan to purchase a home, the FHA is not actually lending money to you, the buyer; the FHA simply guarantees the lender in case you, the borrower, default on your mortgage payments.
- You can pay as little as a 3% of the purchase price of your home for your down payment, and finance your closing costs with your mortgage loan. The FHA can guide you toward programs that require no down payment.
- You can purchase a home in need of repairs and finance the repair costs with the mortgage. This way you can make the necessary repairs immediately without having to come up with the money yourself.
- You can purchase manufactured homes and condominiums with a FHA loan.
- You can finance the cost of energy-efficient repairs with the mortgage.
Find out more about a FHA mortgage using our FHA calculator, or find out how much you can borrow with our FHA Loan Limits calculator.
A FHA loan can allow you to include the costs of your home improvements in your loan. With HUD's 203 (k) program you can purchase or refinance a home that needs improvements and include all repair and improvement costs in the loan. Learn more about FHA refinancing or compare FHA vs conventional loans.
FHA loans can even help you to make your home more energy-efficient. The FHA recognizes that with a more energy-efficient home, the homeowner can afford to pay a higher mortgage; therefore, the FHA can also include these types of repairs in the original loan also. Learn About the FHA Energy Efficient Program
Additional FHA Information
FHA loans are funded by financial institutions such as mortgage centers or banks. The Federal Housing Administration is a branch of the Department of Housing and Urban Development and provides lenders with insurance on your loan. The FHA is here to help you become a homeowner. Both the FHA and HUD both offer low-interest loans to qualified borrowers so that they may purchase homes. The FHA and HUD also offer mortgage insurance for those who are part of the VA Home Loan Guarantee Program. Contact a loan specialist to see if you are eligible for this type of loan.
Get information about FHA Refinancing, FHA Streamline Refinancing, or FHA Credit Issues.
As always, a loan from FHA insures that lenders will be provided with a payment, even if the home buyer defaults. We invite you to learn more about FHA Loans in our Comprehensive FHA Loan Guide.
