Did You Know?

The FHA insures mortgages for people with different needs. That's why it offers a variety of mortgage programs with the same FHA guidelines.

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FHA Loans: America's Favorite Mortgage

What appeals to many first-time homebuyers about FHA loans are the lenient eligibility requirements. But whether you're buying your first home, or just moving to a new one, the FHA loan program can help you finance a home with low down payments and flexible guidelines.

FHA Fixed Rate Loan

A popular FHA program is the fixed-rate mortgage, in which the interest rate remains the same through the term of the loan. With this constant interest rate, monthly payments don't change. Fixed-rate mortgages come with terms of 15 or 30 years.

FHA ARM (Adjustable Rate Mortgage)

Adjustable-rate mortgages have an interest rate that—after an introductory period—varies for the life of the loan. The interest rate changes annually, going higher or lower, reflecting the fluctuating market indices approved by the FHA. The FHA has a few adjustable-rate mortgage options that can suit the needs of many borrowers.

One-Time Close Loans

This construction loan is an FHA program that finances the lot purchase, construction, and permanent loan of a new home in a single mortgage. You need only qualify once and pay a single set of closing costs. Your fixed-interest rate is locked in and the entire loan is in place before construction on your new home begins.

FHA Graduated Mortgage Payments

The FHA offers this type of loan to borrowers who expect their income to increase. The Graduated Payment Mortgage initially has low monthly payments that then gradually increase according to one of five available plans, which have varying lengths and rates.

FHA Growing Equity Mortgage

Growing Equity Mortgages (GEMs) are part of the FHA's Section 245(a) loan type that start off with lower initial payments, and increase according to a predetermined schedule over the life of the loan.

FHA Energy Efficient Mortgage

The FHA's Energy Efficient Mortgage program (EEM) finances energy-efficient home improvements for FHA borrowers. This helps homebuyers save money on household utility bills so that they can afford to make monthly payments on their home mortgage.

FHA Condominium Loans

The FHA helps finance the purchase of condominiums with what is called a Section 234(c) loan. This loan can have a term of up to 30 years. It is primarily for residential condos that have at least two units and are located in an FHA-approved condominium projects.

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FHA Loan Articles

Important FHA Loan Terminology

Borrowers considering an FHA loan should be familiar with some basic loan terminology. These loans are popular among first-time homebuyers and those with lower credit scores because they often offer more flexible eligibility requirements and lower down payment options.

Similarities and Differences Between Co-Borrowers and Cosigners

You may have heard the terms co-borrower and cosigner in connection with your FHA loan process, but aren't sure about the distinction. Both a co-borrower and a cosigner can help a primary borrower qualify for a mortgage, but they have different roles and responsibilities.

FHA Credit Requirements and FICO Scores

The Federal Housing Administration has specific credit requirements and guidelines for borrowers looking to buy or refinance homes with an FHA loan. In addition to what FHA guidelines state, lenders may have more stringent requirements that may vary from one lender to another.

How Is a Mortgage Interest Rate Different than APR

Mortgage APR (Annual Percentage Rate) and a loan's interest rate are two different things, although they are closely related. Understanding the difference is an important part of a borrower's analysis of the true cost of their mortgage.

Refinancing With Various FHA Loan Options

FHA refinance loans allow homeowners with existing FHA loans to refinance their mortgages. These loans are designed to help borrowers take advantage of lower interest rates, reduce their monthly mortgage payments, or access equity in their homes for various purposes.

Can I Get a No Money Down FHA Loan?

FHA loans typically require a minimum down payment of 3.5% of the purchase price of the home with the right credit score. This means that if you're buying a house for $240,000, you would need to make a down payment of at least $8,400.


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