FHA Home Loan

FHA Home Loans

FHA Loans

Among the many loan options available today is an FHA loan. An FHA loan is a mortgage loan that is insured by the Federal Housing Administration (FHA). Basically, the federal government insures loans for FHA-approved lenders in order to decrease their risk of loss if a borrower defaults on their mortgage payment.
An FHA loan has more relaxed guidelines in comparison to other types of loans, as it requires a low down payment and borrowers can have less than perfect credit. An FHA down payment can be as little as 3.5%. Because the requirements are not as strict as, say a conventional loan, additional insurance is required.

The two types of mortgage insurance required for an FHA loan is an upfront mortgage insurance premium (UFMIP) paid at loan closing, and the other is an annual MIP, that is paid monthly as part of the loan payment.

A popular FHA Loan is The 203(b) FHA Fixed Rate Mortgage Loan Program is a widely used FHA home loan, especially among first time home buyers. The 203(b) FHA loan keeps your down payment to a minimum. Your closing costs may also be reduced. The 203(b) FHA loan will finance up to ninety-seven percent of your loan. You must qualify with some debt-to-income ratios, but the 203(b) does not have a minimum income requirement.

There are maximum mortgage limits for FHA loans that vary by state and county. To find out the FHA mortgage loan limits in Bay Area, contact me at (408) 402-5936 or denise@northstarmtg.com.

There is a lot more information to learn about FHA loans prior to making a decision. For more specific questions, please give me a call!


North Star Mortgage and Realty is an FHA approved lender but is not affiliated with the FHA or the federal government. Each is solely responsible for the products and services it offers.


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