FHA Loans

FHA (Federal Housing Administration) loans are government insured against default. Lending institutions can lend their money without the risk of foreclosure typically allowing consumers to qualify with more relaxed terms, credit, and income. FHA loans also allow home buyers to buy homes with less collateral.

Every FHA loan has mortgage insurance (MI) which is money paid to the government to insure the loan. FHA loans require two types of MI, up front MI and annual MI. These figures change frequently so ask your Sr. Loan Officer to give you the current figures. Keep in mind the annual MI is added to your payment each month (principle + interest + taxes + insurance + mortgage insurance = total monthly payment).