FHA Loans

FHA (Federal Housing Administration) is part of HUD.  The loans insured by the FHA are known as FHA loans.  FHA loans are designed to promote home ownership by offering financing with little down payment and more lenient underwriting guidelines than typical conventional loans..

Here are a few benefits of FHA loans:


  • Easier use of gift funds for closing
  • Smaller investment from home buyer (typically 3.5% of purchase price)
  • No pre-payment penalties
  • Less stringent credit requirements than conventional loans


FHA Annual Mortgage Insurance Rates

LTV RatioAnnual Premium for over 15 Years and up to 30 YearsLTV RatioAnnual Premium for Loans 15 Years and Under
95.00% and Under0.85%78% and under0.45%
95.01% and Over0.80%90.00% to 78.01%0.45%
90.01% and Over0.70%