Federal Housing Administration

FHA (Federal Housing Administration)

FHA loans are mortgage loans insured by the Federal Housing Administration. With a low minimum borrower investment requirement of just 3.50% of the sales price, FHA loans are well suited for a first home purchase. Some of the benefits of FHA loans include:

1) Great low fixed rate, often comparable to the best 30 year fixed conventional rates.

2) Reduced cost mortgage insurance premiums that offer substantial savings over similar conventional loans.

3) More flexibility with credit approval than a conventional loan.

4) Parents can help a child qualify for a loan as non-occupant co-borrowers.

In the past, many lenders and Realtors avoided FHA financing due to an often difficult inspection process. Fortunately FHA has streamlined the mortgage process, and inspections will not need to be reviewed by a lender for FHA approval. FM Lending Services is a Direct Endorsement FHA underwriter. This means that we can execute the approval of your FHA loan from start to finish faster than most lenders in the Triangle.

Contact your mortgage consultant today for more information on this great loan product!