FHA stands for Federal Housing Association and is a division of the Department of Housing and Urban Development (HUD). The FHA provides mortgage insurance to approved lenders, allowing these lenders to offer home loans with low down payments reduced closing costs to borrowers who might not qualify for other mortgage programs. FHA loans have been helping borrowers achieve their real estate goals since 1934.
To offer FHA loans, lenders must go through an approval process. At MortgageDepot, we have access to multiple FHA-approved lenders in Pennsylvania who can help you finance your dream home with this established program.
FHA Mortgage Insurance Explained
Since the FHA program is insurance, borrowers must pay a premium as a part of their housing costs. If you decide that an FHA loan is right for you, you will pay an upfront premium of 1.75% of your loan. You can roll this amount into your loan. After that, you will pay a monthly insurance premium when you make your mortgage payment.
FHA Program Features
We recommend the FHA program to many of our first-time buyers, and buyers with lower incomes or credit scores. Here are some of the features that make the FHA program a good fit for Pennsylvania buyers:
- Borrowers only need a credit score of 500 to qualify for an FHA loan.
- Down payments are as low as 3.5%.
- If you are purchasing a home that needs remodeling, you might qualify for an FHA 203k Rehabilitation loan to finance your project.
- If you want to make energy improvements to your home, you might be able to finance those with an FHA Energy-Efficient loan.
- The FHA program offers competitive interest rates.
- Borrowers can use an FHA loan to purchase a primary residence with between one and four units, a condo, manufactured housing or a mobile home.
Contact MortgageDepot Today!
If you’re wondering if the FHA program is the best way to finance your Pennsylvania home purchase, connect with MortgageDepot. Our experienced loan officers will lead you toward the best mortgage product for your personal and financial needs. Request a quote today!
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