Federal Housing Administration (FHA) Loans
The Federal Housing Administration (FHA)
Analysis of FHA's Single-Family Insurance Program
Federal Housing Administration (FHA) Loans:
FHA mortgage programs are available to all buyers. These programs are designed to help creditworthy low-income and moderate-income families who do not meet requirements for conventional loans. FHA loan programs are particularly beneficial to those buyers with less available cash.
FHA loan benefits:
- Only requires a 3% down payment
- Ability to finance closing costs
- FHA has set limits on the amount lenders can charge for some closing cost fees (e.g. origination no more than 1% of mortgage).
- Maximum mortgage amount can vary significantly by area. FHA adjusts this amount periodically based on certain economic variables. You should check with your local FHA office or approved lender to determine your maximum mortgage amount.