FHA

This is a HUD or government insured loan that allows buyers to purchase a home for only 3.5% down. The FHA loan has maximum loan limits for each county which are significantly lower than conventional limits (search your county limits here). An FHA loan is excellent for someone who has less money to put down, who has higher debt-to-income ratios, or whose credit is less than perfect.

• Only 3.5% down
• Flexible qualification guidelines
• Debt-to-income ratio as high as 55%
• Requires up-front & monthly mortgage insurance (MI)
• Maximum loan limits vary by county
• MI required for the entire life of the loan
• Allows for no cost, no qualifying “streamline” refinance