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Buying a Home with a FHA Loan

(FEDERAL HOUSING ADMINISTRATION)

An FHA loan is partially insured by the Federal Housing Administration (FHA). The FHA’s insurance lessens a lender’s risk when offering loans to buyers with limited funds for a down payment and/or for imperfect credit. Recently, the primary function of the FHA Mortgage insurance program has been geared to ensure that low-income families, those with lower credit scores, first-time buyers and other borrowers who may not qualify for a conventional mortgage have additional options to apply for a mortgage.

HIGHLIGHTS OF A FHA LOAN

You may be able to qualify with a lower credit score compared to other loans.
You may qualify to buy your primary residence with a down payment as low as 3.5%.
You may be allowed to use a gift from a direct family member or a grant for all or a portion of your closing costs and/or down payment.
You may qualify even if you’ve had financial difficulties in the past, like a bankruptcy.
No income limits
The current loan limit for a FHA loan in MS is $331,760
Sellers can contribute up to 6% of the sales price toward allowable closing cost

Home must be used as a primary residence and is subject to a FHA-approved appraiser. Mortgage insurance premiums may apply. Terms and conditions apply. This is not a commitment to lend. Credit is subject to approval. Programs, rates, terms and conditions are subject to change without notice.

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