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• About FHA
• Is FHA right for me?
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The Facts about FHA Loans

An FHA loan is a mortgage that is insured by the Federal Housing Administration and issued by an FHA approved lender. The rates on FHA loans tend to be lower because the government is essentially guaranteeing it will pay the mortgage if the borrower cannot.

Here are a few more facts about FHA loans that you should know about:

• FHA insured loans usually allow you to refinance with a higher Loan to Value (LTV) ratio than traditional mortgages - in some cases up to 97% of your home's value.
• FHA loans are usually better for lower-income borrowers or borrowers with less-than-perfect credit.
• FHA approved lenders usually charge lower interest rates and closing costs than traditional mortgage lenders.
• The borrower pays a small upfront mortgage insurance premium, as well as an ongoing small monthly fee.
• It's easier to qualify for an FHA loan. While the lender will perform a credit and income check, you do not need to have a "perfect" credit score to get one!
• There are no minimum or maximum income limits to qualify for FHA loans.
• While FHA loans require no minimum credit score, like any loan, the better your score, the better your interest rate.
• Borrowers must be legal United States residents and have a valid Social Security number.

It's always in your best interest to shop around for the best mortgage terms, which includes taking a look at how traditional mortgages compare with FHA insured mortgages. Contact Embrace Home Loans today so we can help you decide if an FHA loan is right for you!