Loan Program

 What Is An FHA Mortgage?

An FHA mortgage is a loan insured by the Federal Housing Administration (FHA) and issued by FHA-approved lenders. FHA loans are designed for low- to moderate-income borrowers and allow a lower minimum down payment and lower credit scores than many conventional loans. This makes an FHA loan a good option for first-time homebuyers, average credit scores, or borrowers who are developing or recovering their credit. 

Things To Consider With An FHA Loan

FHA loans require the borrower to pay an Upfront Mortgage Insurance Premium (UFMIP) and an annual Mortgage Insurance Premium (MIP), paid monthly. These payments can last for either 11 years or the entire life of the loan, depending on the type of loan and amount of down payment.

Generally, FHA loans are designed for primary residences and not intended for investment or rental properties. Additionally, homes that are attached, townhomes, rowhouses, and condos may require extra assessment by the FHA loan program. 

Thinking about applying for an FHA mortgage loan? Our mortgage specialists at Preferred Mortgage Source are here to help whether you would like to consider an FHA mortgage or explore the many other mortgage products we have available. Give us a call at 404-383-1003 or complete our easy contact form below. One of our experienced mortgage advisors will contact you soon.