Federal Housing Administration (FHA) home loans are mortgages that are insured and backed by the federal government. FHA mortgages were designed to assist borrowers who would otherwise not qualify for conventional financing due to credit and down payment requirements. FHA does not actually create these mortgages, rather it provides insurance payments to allow private lenders that are FHA-approved to issue these mortgages and help more borrowers obtain financing for a home. FHA loans are designed to make owning a home more affordable for those who may have struggled with credit in the past. It’s also a great option for borrowers that don’t have a large enough down payment to obtain a conventional loan. FHA Loans can be used to purchase a new home or refinance an existing home. The streamline refinance option also allows borrowers to refinance their existing FHA mortgage with less documentation than a traditional FHA or conventional refinance.
In order to obtain an FHA mortgage, you will either be looking to purchase a home in the near future or refinance a home that you currently own. If you are looking to make a new home purchase, the first step of this process is to get pre-approved. If you are looking to refinance your home, the requirements will differ slightly from a purchase. Speaking to one of our licensed loan officers will give you the education you need to make an informed decision so you can get your current mortgage refinanced.