A Tennessee FHA mortgage or FHA loan allows for the refinance or purchase of a home with a low down payment. These loans are great for the first-time homebuyer and that is why the FHA loan has become so popular.
FHA loans have been helping everyday consumers become homeowners dating back to 1934. How are lenders able to offer such low interest rates through the FHA loan program? The Federal Housing Administration (FHA), which is part of HUD insures the loan, so your lender can offer you a better deal.
The Top 5 Facts about FHA Loan Programs:
- Low down payments
- Low closing costs
- Easy credit qualifying
- Rent payments can be used as a credit qualifier
- Low Interest
An FHA loan is a mortgage loan that are insured against default by the Federal Housing Administration (FHA). The FHA loan program is available for single family and multifamily homes. These home loans allow banks to continuously issue loans without much risk or capital requirements. The FHA doesn’t issue loans or set interest rates, it just guarantees against default.
An FHA loan will allow individuals whom might not qualify for a conventional mortgage obtain a loan, specially first time home buyers. These loans offer low minimum down payments, reasonable credit expectations, and flexible income requirements.