The Federal Housing Administration is a division of the U.S. Department of Housing and Urban Development, commonly referred to as HUD. FHA loans were created to provide affordable mortgages to the average homebuyer. The federal government insures FHA loans, or guarantees participating lending institutions against loss from default on qualifying loans.

Programs and Features:

• Fixed Rate Loans

• Available for detached 1 to 4 unit dwellings, eligible condos and PUD's

• Properties must meet HUD guidelines and be inspected by HUD-approved appraisers

• Subject to loan limits set by HUD (see HUD web site for loan limits)

• Mortgage insurance of one-half of 1% due annually and paid monthly

• One time mortgage insurance fee of 1.75% charged on detached dwellings and PUD's, which may be financed

• Non-occupant co-borrowers allowed

• No reserve requirements at closing

• 100% of down payment and closing costs may be a “gift”

• Fully assumable by a qualified borrower

• Seller may contribute a maximum of 6% of the lower of the sales price or the appraised value

For current rates, or more information on applying for a home loan, contact a Mortgage Loan Officer or call us at 808-356-4000.