What is an FHA Mortgage Loan?
HUD (Department of Housing and Urban Development) which was formed in 1965 operates the Federal Housing Administration which administers the Govenment Home Loan Mortgage Insurance Program. This program insures the lender against default by a borrower whose home loan is insured by the FHA. Hud and FHA do not make the loans – FHA only insures the loans.
FHA issues insurance for several types of loan programs. FHA 203b is used for 1-4 units residential purchases and only requires 3.5% down payment which can be gifted from relatives, a government agency or non-profit organization. The seller can contribute up to 6% towards closing costs. The FHA 203b is also used for cash out refinances, rate & term refinances and streamline refinances.
FHA 203k is used for rehabilitation of 1-4 unit properties.
FHA 234c is used a condiminium loan
FHA 251 is an adjustable rate mortgage
Energy Efficient Morgage Program
Reverse Mortgages for Seniors
FHA Hybrid adjustable rate loans
FHA 2-1 Buydown