FHA Loans
What is an FHA Loan?
An FHA loan is a home mortgage that’s insured by the Federal Housing Administration (FHA) and originated by an FHA-approved lender.
Because the U.S. government insures the lender’s money, FHA home loans come with less strict credit requirements and qualifications. For first-time homebuyers, borrowers can purchase a home with lower credit scores and smaller down payments than conventional guidelines allow. An FHA mortgage is also ideal for those who have filed for bankruptcy in the past 2+ years, experienced a foreclosure in the past 3+ years, or who cannot otherwise qualify for a Conventional Loan. That said, FHA loans do essentially work the same as other home lending programs.
You’ll still need to qualify based on your income, credit history, and employment history, and verify that you can secure enough funds to cover the down payment and closing costs. The downside to an FHA Loan is that you will need to pay higher mortgage insurance and that you cannot use your loan to finance an investment property.
Advantages of an FHA Loan include:
- You may qualify with a lower credit score than a Conventional Loan
- You may qualify with more debt than a Conventional Loan
- You do not have to be a first-time homebuyer to qualify
- There are several loan programs to choose from
Saguaro Lending offers FHA Loan rates in Arizona and Washington. In Washington, the borrower is responsible for the premiums for that insurance.
Saguaro Lending is not affiliated or acting on behalf of or at the direction of the FHA or the Federal Government
