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    Buying a Home with an FHA Loan

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FHA Home Purchase Loans

FHA Mortgage Loans make home mortgages available for borrowers who would otherwise not qualify for a conventional mortgage.  Not all banks and mortgage lenders offer FHA Loans.  In order for a lender to offer an FHA home mortgage loan, that lender must have a direct endorsement and go through an HUD approval process.  People commonly assume the FHA offers loans directly.  In reality, The Federal Housing Administration or “FHA” insures the loans for approved FHA lenders in order to improve housing standards and conditions.

FHA 203b Home Purchase Loan

An FHA Home Purchase Loan is sometimes referred to as a 203b and is a fixed rate home loan program. It is the most common FHA purchase loan program. Here are some of the standard FHA loan guidelines that apply to the 203b purchase loan:
  • The minimum down payment required is 3.5% of the sales price.
  • Gift funds are allowed to be used as a down payment by prospective homeowners
  • Borrowers can finance up to a maximum loan-to-value (LTV) of 96.50%.
  • New or existing one-to-four single family unit structures are eligible.
  • Loan terms for the 203b home loan are either 15 or 30 fixed mortgages

FHA Mortgage Loans
make homeownership possible for more people.

The Federal Housing Administration (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD), provides loan programs that make buying a home easier for those with lower credit scores, limited cash for down payment, and for those who may not qualify for other types of loans.

What is an FHA Home Mortgage Loan?

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How to Qualify for an FHA Mortgage

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Guidelines and Requirements for an FHA Mortgage Loan

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FHA Loans for First Time Home Buyers

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Credit Score Requirements for FHA Loans

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All About FHA 203k Loans

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