The FHA loan program is a government-sponsored loan.
The government doesn’t lend you the money, but instead they make the rules for these kinds of loans.
Lenders who offer these loans follow the government rules, and in exchange get the government to insure the loan.
FHA loans offer a huge amount of flexibility.
• You don’t need a giant down payment.
• You don’t need to have perfect credit.
• The interest rates are usually very low.
• They sometimes allow you to borrow more than a conventional loan would.
Are You a First-Time Homebuyer?
The FHA loan program is a great first-time homebuyer program because of all these great features.
Most people who use an FHA loan to buy their home will keep it for a few years, and then look for an opportunity to refinance to a conventional loan if they can get a lower payment. Usually the opportunity to refinance is due to the house having gone up in value.
I am a huge fan of the FHA loan program.
It helps people buy homes like no other program.