FHA Loans, also known as first time home buyer loans, are government-backed mortgages provided by FHA Lenders and insured by the Federal Housing Administration often referred to as the FHA. The FHA is part of the US Department of Housing and Urban Development also known as HUD. Due to the government insuring the FHA Mortgage, FHA Loan Requirements are easier to meet for many home buyers and have lower down payments than conventional mortgages.
FHA Loan Requirements
FHA Loan requirements are less strict than many traditional mortgage loan requirements. Because the loans are insured, lenders can offer better incentives such as lower down payments, lower closing costs, and easier credit qualification.
FHA Lenders are lenders offering FHA Loan Products. Many banks and credit unions offer Federal Housing Administration loan products. Prior to getting pre-qualified and getting a mortgage prequalification letter, buyers should ask their potential lenders if they offer FHA Loan products. If the current lender does not offer these types of products, buyers might consider searching out FHA lenders. Comparing offers from FHA lenders before deciding which lender to choose can help to get the best options.
First Time Home Buyer Loans
First time home buyer loans offer buyers loan down payment options. Down payments can often be as low as 3.5 percent. Properties purchased can be from one to four-unit properties.
How to Apply for Federal Housing Administration Loan Products
If you are considering using a loan insured by the Federal Housing Administration to purchase your home, search and compare lenders offering the loan products. You might consider checking with your local banks and credit unions in the area. If you are unable to find a lender in the area offering Federal Housing Administration Loan products, you can Search for FHA lenders in Missouri. We suggest getting as much information as possible from lenders. Then compare the options with pros and cons to see which lender offers the best terms for your situation. After having reviewed different options, then contact the selected lender and proceed to the next step. Buyers can also contact HUD to ask questions and to get advice from a HUD-approved counselor.