The Federal Housing Administration (FHA) mortgage insurance program is managed by the Department of Housing and Urban Development (HUD), which is a department of the federal government. FHA loans are available to all types of borrowers, not just first-time buyers. The government insures the lender against losses that might result from borrower default. Advantage: This program allows you to make a down payment as low as 3.5% of the purchase price. Disadvantage: You’ll have to pay for mortgage insurance, which will increase the size of your monthly payments.
FHA Down Payment Assistance – FHA also has a down payment assistance program that could potentially mean you only have to pay 1/2% down which on a $150,000 property would be only $750. There are qualifications for the program but if you would like to learn more contact us and we will get you in touch with one of our preferred lenders that have access to this program.