Term Tuesday: FHA Loan

The Federal Housing Authority (FHA) is a part of the Department of Housing and Urban Development (HUD) which insures mortgages on residential property. According to HUD.gov, it is the largest insurer of residential mortgages in the world.

FHA Loans are a popular choice for first time home buyers due to a few unique features:

• Low Down Payment (3.5%) that can come as a gift
• Competitive Interest Rates
• Easier to qualify with less than perfect credit
• Options to help avoid foreclosure in times of distress
• See the full list on the HUD.gov website

To utilize FHA financing, you must first find an approved lender, such as Greenpath Funding. A lender search tool is also available on the HUD.gov website.