Loan Programs

Imperfect Credit Programs | Conforming and Non-Conforming | Fixed Rate | Balloon | Adjustable Rate | Interest Only | FHA

There are lots of good reasons to choose an FHA loan, especially if one or more of the following apply to you:

1. You're a first-time homebuyer
2. You don't have a lot of money to put down on a house
3. You want to keep your monthly payments as low as possible
4. You're worried about your monthly payments going up
5. You're worried about qualifying for a loan
6. You don't have perfect credit

You may use an FHA-insured mortgage to purchase or refinance a new or existing 1-4 family home, a condominium unit or a manufactured or mobile home (provided it is on a permanent foundation). FHA-insured loans offer many benefits and protections that you won't find in other loans including:

Lower cost: FHA loans have competitive interest rates because the Federal government insures the loans for lenders.

Smaller down payment: FHA loans have a low 3% down payment and the money can come from a family member, employer or charitable organization as a gift.

Easier qualification: Because FHA insures your mortgage, lenders may be more willing to give you loan terms that make it easier for you to qualify.

Less than perfect credit: You don't have to have perfect credit to get an FHA mortgage. In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for an FHA loan than a conventional loan.

More protection to keep your home: The FHA has been around since 1934 and will continue to be here to protect you. Should you encounter hard times after buying your home, the FHA has many options to help you keep you in your home and avoid foreclosure.

How do FHA loans compare to conventional loans?

Conventional loans usually require a larger down payment. And, if you have less than perfect credit you may not qualify for many conventional loans and find yourself being offered loans with higher interest rates and/or fees than you expected. The best thing to do is compare the cost of the conventional loan to an FHA loan line-by-line. What are the fees on each? What is the interest rate? How much is the mortgage insurance on each? How much down payment is required? For some borrowers, a conventional loan may be less expensive. For many others, it will be more expensive than FHA.