FAQs (data-driven)

FHA Loans

• What is an FHA mortgage?

  A mortgage loan insured by the Federal Housing Administration (FHA); helps borrowers qualify with a lower down payment and flexible credit requirements.

• Who qualifies for an FHA loan?

  FHA offers loans to borrowers with limited to no credit, and with imperfect credit history. FHA loans offer flexible requirements and leniency to borrowers with past credit issues.

• Will a down payment be required with an FHA loan?

  Yes, a down payment of at least 3.5% is required for an FHA loan.

• How much money do I need for closing costs?

  Closing costs may vary depending on the loan amount and your location. Generally, it is recommended to expect 2% - 3% of the loan amount.

• What is FHA mortgage insurance (MIP)?

  Mortgage insurance premium (MIP) is a type of mortgage insurance that is required for an FHA loan. In the event of foreclosure, the lender is protected. This allows the lender to offer flexible terms to borrowers.

• What types of properties qualify for FHA financing?

  An FHA loan may be used to purchase or refinance a new or existing single-family home, 2–4-unit, condominium, or a manufactured home (provided the home is on a permanent foundation).

• Do first time home buyers have to use an FHA loan?

  First time home buyers do not have to use an FHA loan. Discussing with a Mortgage Loan Officers can be beneficial for choosing which mortgage works best for you and your budget. Reach out to us today. Call us at 801-786-8400 or visit a branch near you.