- Government backed loan aimed at helping the underserved get mortgage financing
- Loan amount limits vary widely by county – here is the link to the official loan limit search engine.
- Rates tend to be lower than the conforming counterpart but the required mortgage insurance(PMI), makes conventional a better and a more cost effective choice in most cases.
- As little as a 3.5% down payment required meaning you can finance up to 96.5% of the purchase price.
- Less strict underwriting guidelines compared to a Conventional Mortgage.
- As of June 3, 2013 all 30 year FHA loans have Mortgage insurance(PMI) for the life of the loan.
- In addition to the Mortgage Insurance (PMI) there is also an upfront mortgage insurance collected.