FHA Loans Louisville KY
An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD).
The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance (MIP) in case the borrower defaults on his or her loan obligations. Available to all buyers, FHA loan programs are designed to help creditworthy low-income and moderate-income families who do not meet requirements for conventional loans.
FHA loan programs are particularly beneficial to those buyers with less available cash. The rates on FHA loans are generally market rates, while down payment requirements are lower than for conventional loans.
Some of the other benefits of FHA financing:
· Only a 3 percent down payment is required.
· Closing costs can be financed.
· Lower monthly mortgage insurance premiums and, under certain conditions, automatic cancellation of the premium.
· More flexible underwriting criteria than conventional loans
· FHA limits the amount lenders can charge for some closing cost fees (e.g. the origination fee can be no more than 1% of mortgage).
· Loans are assumable to qualified buyers.
For example, an FHA loan may be ideal for a young couple who are interested in purchasing their first home. Young couples typically have low-to-moderate incomes and may not meet the eligibility requirements of conventional loans, making an FHA loan an ideal option.
A popular option for many Americans, an FHA loan can be extremely beneficial. You can view a full list of FHA loan programs here.
If you’re looking at obtaining a Kentucky loan but may not meet the requirements of a conventional loan, an FHA loan in Louisville may be for you. Get in touch with us today to see which loan program is right for you and your family.