Federal Housing Administration Mortgages
The Federal Housing Administration (FHA) is a federal agency within the US Department of Housing and Urban Development (HUD). The FHA guarantees both fixed and adjustable rate mortgages offered through Fairway. The FHA exists to facilitate housing opportunities and is widely used for first-time home buyers. FHA loans are also available for refinancing a home. The advantages for the FHA loan include, but are not limited to: great for 1st time home buyers, flexible credit requirements and down payments can be a gift from a family member, employer, non-profit organization or government instrumentality.
The FHA was started back in the early 30´s as a means to help the US build and provide affordable housing for US citizens during and after the Great Depression. FHA is designed to help people purchase homes with low down payments, providing financing with only a 3.5% down payment. And despite what many believe, FHA is not restricted to first time home buyers.
- 3.5% down payment required
- $314,827 maximum mortgage in most areas of PA for a single family home
- 30 year fixed rate terms
- Seller can pay up to 6% of the sales price toward buyer’s closing costs
- Maximum financing is available to purchase 1-2-3-4+ unit properties if buyer is going to occupy one unit and with the same low down payments.
- Standard underwriting with a debt-to-income ratio up to 54% with strong compensating factors.
- No area restrictions
- More flexible than conventional loans in regards to credit standards
- Rehab or “fixer-upper” financing is available with FHA
- Home being purchased must be used as primary residence
FAIRWAY Independent Mortgage Corp. is a “Full Eagle” delegated FHA lender, which is the highest FHA authorization available. We originate, process, underwrite and fund our own FHA loans. We are your FHA Loan Specialists! In 2017 and 2018, Fairway was the #1 FHA purchase lender in the U.S.