FHA Home Mortgage Loans

An FHA home mortgage loan is a loan insured against default by the Federal Housing Administration. The program came about during The Great Depression as a way to encourage homeownership during hard financial times. The FHA loan program is still around today and borrowers of all types can still take advantage of all that FHA has to offer.

Because the FHA insures that loan, lenders are more willing to work with borrowers who may not qualify for conventional loans. The qualifying guidelines are much more flexible that other types of loans, especially in regard to credit history. Borrowers with a less than perfect credit history may still qualify under FHA guidelines.

But this doesn't mean that FHA loans are only for borrowers with blemishes on their credit history. Truth is, almost ANYONE can qualify for and take advantage of the FHA home mortgage loan program.

Advantages of FHA home mortgage Loans

• Low down payment - As low as 3.5%
• Less than perfect credit history - Because FHA loans are insured by the government, lenders are more willing to lend to borrowers with less than perfect credit.
• Gifts can be used for down payment.
• No prepayment penalties - FHA loans do not have any prepayment penalties and they can easily be refinanced later on.
• Higher debt-to-income ratios.

FHA loans are ideal for first-time home buyers because of the lower down payment options and more flexible qualifying guidelines.

FHA also offers a refinance program for current homeowners. With an FHA home mortgage loan, you can refinance up to 97.5% of your home's value or an FHA cash-out refinance of up to 85%

Contact one of Maverick Funding's experienced mortgage professionals to see if an FHA home mortgage loan is right for you or apply online to be pre-approved.