FHA Loans

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In an effort to bolster home sales during the Great Depression, the Federal Housing Administration was created in 1934.  Much of the risk of non-payment and foreclosure is lifted because of the financial backing offered by FHA.  It is important for you to remember that FHA is not a lender, rather they guarantee loans that are underwritten in accordance with their guidelines.



  • Bankruptcy is not an automatic disqualification
  • 3.5% down payment (for purchases)
  • 97.75% loan to value (for refinances)
  • 85% loan to value for cash out refinance
  • Higher debt:income ratio compared to conventional financing
  • Lower credit scores allowed compared to conventional financing
  • Backed by U.S. Government
  • Lower interest rates
  • Lower mortgage points and other closing fees