FHA
FHA stands for Federal Housing Administration, a government agency created as part of the National Housing Act of 1934 primarily to increase home construction, reduce unemployment, and operate various loan insurance programs. The FHA is now part of HUD (the Department of Housing and Urban Development).
The FHA doesn't give money to people or set interest rates – it insures loans for lenders against defaults. These loans must meet certain financial and credit guidelines and are ideal for many borrowers. FHA-insured loans offer benefits that are not available through conventional loan programs. On the flipside, however, FHA loans require mortgage insurance for down payments below 20%, but is still less expensive than conventional mortgage insurance.
FHA-insured mortgages can be used for both purchases and refinances. If one of the following categories describes your situation, an FHA loan may be a good fit:
- Any type of home buyer (including first time)
- Low down payment (3% or higher)
- Gifted down payment from family member, employer or charitable organization
- Concern about loan qualification
- Less than perfect credit
- Possibility of falling behind on payments
For more information, please contact your PERL Mortgage advisor or request FHA details by emailing perl@perlmortgage.com.
PERL Mortgage is an Illinois residential mortgage licensee (MB0004358) and equal housing lender