- Type of Loan: The FHA Purchase Loan is considered a Government Loan insured by HUD.
- Loan Term: 10, 15, 20 25 and 30 years fixed. ( Odd loan terms are also available)
- Mortgage Insurance: FHA requires MIP ( Mortgage Insurance Premium) both up front and monthly regardless of your down payment or loan to value.
- Credit Score Requirements: 580 Middle Credit Score for all borrowers.
- Down Payment Requirements: 3.5% is the minimum down payment required.
- Interest Rate: Fixed/ Adjustable
- Additional Facts: The perfect loan for the first time homebuyer with limited resources for down payment and closing costs. Ideal for the borrower with low to moderate income. Allows for the greatest credit and underwriting flexibility of just about any other mortgage loan program available. A final benefit of this loan is that it allows sellers to pay 100% of your closing cost; thereby, requiring your 3.5% down payment as your only out of pocket money for closing.