What Are FHA Mortgage Programs?
FHA Mortgage programs are home loan programs intended to make it easier for Americans to own their own home. The FHA (Federal Housing Administration) doesn’t provide the loan itself but insures loans made by private lenders. This means that the FHA will pay the lender if a borrower defaults on a loan. FHA home loans are available to borrowers for their primary place of residence, regardless of whether they have owned a property before. You don’t need to be a first time homebuyer in order to qualify for an FHA home loan. What Are The Advantages Of FHA Mortgage Programs? Lower Interest Rates: Typically, FHA Mortgage programs have lower interest rates than some conventional loans. This is primarily because the federal government insures the loan against default. Smaller Down Payment: FHA Mortgages require a smaller deposit on the property. FHA home loans require a minimum of 3.5% of the total property value as the down payment for your home. This is smaller than some other mortgage progra
