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Dharmesh Raheja

FHA Loans

Sunday, February 19, 2012 - Article by: Dharmesh Raheja - Financial Services - Message

FHA Loans

The Federal Housing Administration (FHA) is a federal agency within the U.S. Department of Housing and Urban Development (HUD). Since the 1930's, FHA loan programs were designed to help the creditworthy of the low and middle class families to fulfill their dream of home ownership.

FHA loans are flexible, secure and it reflects the Government's commitment to expanding homeownership. The FHA loans program provides the opportunity of getting the reduced low payment requirements and relaxed underwriting standards compared to conventional loans.

Programs available to FHA eligible borrowers:

  • 30-year fixed mortgage
  • 15-year fixed mortgage
  • 5/1 ARM
  • 30-year fixed Jumbo ($417K to $729,750: strict guidelines apply)
  • 15-year fixed Jumbo (strict guidelines apply)
  • 5/1 ARM Jumbo (strict guidelines apply)

The most popular FHA home loan is the 203(b). This fixed-rate loan often works well for first time home buyers because it allows individuals to finance up to 97 percent of their home loan. This helps to keep down payments and closing costs at a minimum. The 203(b) home loan is also the only loan in which 100 percent of the closing costs can be a gift from a relative, non-profit, or government agency.


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