Current FHA Mortgage Rate Search

 FHA Mortgage Loan or Federal Housing Administration Mortgage Loan


FHA stands for Federal Housing Administration, which is a program that has been in place since the 1930s. The FHA’s goal is to help stimulate the housing market by making home loans accessible and affordable.

FHA loans are often called First Time Home Buyer Loans but in reality, they are only one of the two types of first time home buyer loans.  Both FHA Mortgages and Affordable Conventional Mortgage Loans are used extensively for home loans with first time home buyers.  FHA loans can be used by any buyer even if they are not a first time home buyer.  In most cases, a buyer can only have one FHA mortgage loan at a time.

FHA loans have many advantages.  Some of the biggest advantages are:

  • You can buy a home with an FHA loan with a low down payment, as small as 3.5% – much lower down payment than standard conventional home loans offer.
  • You can use gifts (such as borrowed money or a monetary gift from a family member) for down payments and closing costs.
  • There are no prepayment penalties, so you can refinance or pay your home off early without worrying about paying for this option. This is especially important for subprime borrowers since most non-FHA loans for subprime borrowers have pre-payment penalties.
  • You may be allowed to assign or allow another borrower to assume your FHA loan if you choose and they meet the requirements.
  • You may receive leniency if you stumble across hard financial times while paying your home loan.
  • You can fund for home improvements with the FHA 203K program.
  • FHA loans are normally easier to qualify for and can have higher DTI ratio’s than conventional loans.  Very few lenders will offer a conventional loan to a borrower with a credit score under 620.
  • Buyers with their own down payment plus at least one month or more of liquid reserves can very often be approved with credit score down to 580.