Federal House Administration Loans in Sacramento, CAUnderstanding Home Loan & Mortgage FHA Loans
Federal Housing Administration (FHA) Loans
Looking for your mortgage payment to be the same every month? Then a fixed rate loan, may be right for you. A fixed-rate mortgage loan provides you with the security of having the same interest rate over the life of the loan
Fixed rate loans come in a variety of loan terms, including 15, 20, and 30 year terms. The monthly principal and interest payments will be predictable, which makes it easy to budget every month. May be a good choice if you plan to stay in your home for a long time.
Feel at ease from rising interest rates for the life of the loan, no matter how high interest rates go.
What is an FHA loan?
An FHA mortgage is a government-backed home loan with more flexible lending requirements than those for conventional loans. Because of this, interest rates for FHA mortgages may be somewhat higher, and the buyer may need to pay monthly mortgage insurance premiums along with their monthly loan payments.
FHA loans are insured by the Federal Housing Administration (FHA) and may have an easier qualification process due to less stringent down-payment and credit requirements than conventional mortgages. Note: If you’re a current military member or veteran, you may be eligible for a VA home loan with little or no downpayment.
Fill out our short online application to get pre-approved in minutes
Questions? Call US!
FHA Benefits and Considerations
Lower down payments
An FHA mortgage may require a down payment as low as 3.5 percent, although the interest rate may be somewhat higher than with a conventional mortgage.
Lower credit thresholds
Popular for refinancing
Many borrowers with newly adjusting ARMs look to refinance into fixed-rate FHA loans. Learn more about your refinance options.
FHA Requirements and Qualifications
- FHA home loans have maximum mortgage limits that vary by state and county.
- FHA loan guidelines require a minimum down payment of 3.5 percent.
- FHA loans require that the home being purchased must meet certain conditions and be appraised by an FHA-approved appraiser. New FHA loans are available only for homes that will be used as the buyer’s primary residence.