FHA Loan Programs

Could an FHA Loan* be right for you? Let's take a look.

What is an FHA Loan?

It is a mortgage that is insured by the Federal Housing Administration (FHA). The down payment may be as little as 3.5 percent, but the purchase price is limited. There are lots of good reasons to choose an FHA loan, especially if one or more of the following apply to you:

  • You're a first-time homebuyer
  • You don't have a lot of money to put down on a house
  • You want to keep your monthly payments as low as possible
  • You're worried about your monthly payments going up
  • You're worried about qualifying for a loan
  • You don't have perfect credit

Am I eligible for an FHA loan?

In order to be eligible for an FHA-insured mortgage, a borrower must:

  • Occupy the property as their principal residence
  • Have a valid Social Security Number
  • Have a two-year employment history - school and military service count towards this requirement
  • Not be delinquent on any Federal debt such as a student loan or other FHA-insured mortgage, and
  • Meet flexible credit requirements

Contact a Loan Originator in your area with any questions!

Benefits of Choosing an FHA Loan

Want to learn about additional FHA Loan benefits? See below:

  • Low Down Payment: FHA loans allow you to buy a home with a down payment as small as 3.5%. Other loan programs generally require a much larger down payment.
  • Low Credit Score: borrowers with low credit scores are more likely to get approved if they apply for an FHA loan.
  • Additional Purchasing Funds: it’s easier to use gifts for a down payment and closing costs. In addition, sellers can pay up to 6% of the loan amount towards a buyer’s closing costs.
  • Prepayment penalty: there is none (a big plus for subprime borrowers).
  • Home improvement: certain FHA loans can be used to pay for home improvement (through FHA 203k programs).

* Village Mortgage Company is not affiliated with or acting on behalf of or at the direction of the FHA or the Federal Government.


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