For first time home buyers that are looking for a lower down payment option, FHA may be the answer for you.

FHA loans are insured by the Federal Housing Administration (FHA) and generally allow for lower down payment and offer more leniency than conventional lending on certain credit issues such as bankruptcy and foreclosure.

Being insured by FHA means a borrower is allowed to put as little as 3.5% of the purchase price as a down payment.  FHA loans are also more forgiving than conventional loans in terms of how much total monthly debt a borrower can have.

This all comes at a price of course…as you may have already expected 

FHA financing requires payment of an Upfront premium (UFMIP) that is added to the loan as well as a monthly Mortgage Insurance Premium (MIP) that is currently required to be paid for the life of the loan under most conditions. There are some factors which may impact the length of time the MIP is required and we encourage you to contact us directly to find out more. 

The Federal Housing Authority sets maximum mortgage limits for FHA loans that vary by state and county. There is a wide range of maximum loan sizes that do not necessarily coincide with conforming loan limits. We strongly recommend contacting us directly to learn more about the maximum loan size allowed for your specific financing needs.