FHA Home Loans

An FHA loan is a mortgage that is insured by the Federal Housing Administration (FHA), a government agency within the Department of Housing and Urban Development (HUD). The FHA was created in 1934 to help stimulate the housing market and increase homeownership by providing mortgage insurance to lenders who make FHA-insured loans.

One of the main benefits of an FHA loan is that it allows borrowers to make a down payment of as little as 3.5% of the purchase price of the home. This is significantly lower than the down payment required for most conventional mortgages, which can be as high as 20%. FHA loans also have more flexible credit score requirements, allowing borrowers with lower credit scores to qualify for a mortgage.

In addition to the lower down payment requirement and more flexible credit score requirements, FHA loans also offer other benefits to borrowers. For example, they allow for a higher debt-to-income ratio, which means that borrowers can have a higher level of debt relative to their income and still qualify for a mortgage. They also offer more lenient guidelines for certain types of income, such as income from self-employment or rental properties, which may not be accepted by some conventional lenders.

FHA loans are available in a variety of loan types, including fixed-rate mortgages, adjustable-rate mortgages (ARMs), and hybrid ARMs. Fixed-rate mortgages offer a set interest rate for the life of the loan, while ARMs have a variable interest rate that can change over time. Hybrid ARMs offer a fixed interest rate for a set period of time, after which the interest rate becomes adjustable.

In summary, an FHA loan is a mortgage that is insured by the FHA and designed to help increase homeownership by providing more flexible credit and down payment requirements to borrowers. FHA loans are available in a variety of loan types and offer several special programs for specific groups of borrowers. To qualify for an FHA loan, borrowers must meet certain eligibility requirements, including having a valid Social Security number, being of legal age to sign a mortgage, and having a stable and reliable source of income.

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NMLS 1387311
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Alabama License 23266
Colorado License
Florida License MBR5867
Georgia License 1387311
North Carolina License B-214180
Oklahoma License MB015306
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Foundation Mortgage
2160 Lakeside Centre Way
Suite 100
Knoxville, TN 37922

(865) 392-5450

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