What is an FHA loan?
An FHA loan is a mortgage loan that is insured by the Federal Housing Association (FHA). Instead of providing the loan, the FHA insures the mortgage to the lender. They offer a number of benefits that is not available with other loans, making them ideal for first-time homeowners, or buyers who do not have perfect credit history or a substantial amount of money for the down payment.
What are the benefits of an FHA loan?
- Flexible underwriting guidelines, with a low down payment.
- Down payment as low as 3.5%, and as low as 1% down through the Ohio Housing Finance Agency (OHFA)
- Flexible repayment terms. FHA loans have a number of different repayment options and payment plans
- Gifts are allowed for down payment
Whether a first-time homebuyer or have little to put down, an FHA loan could be the right fit for you. The nature of the FHA loan means that it is possible to keep monthly repayments low, creating a more affordability option for the buyer.
If you’re considering an FHA loan or want to know if this loan is right for you, contact us today for further information and guidance.