FHA loans

Fairway Independent Mortgage is a specialist in FHA loans in Charlotte, especially for First Time Home Buyers and homebuyers without a 20% downpayment.

An FHA loan is simply a mortgage that is insured by the Federal Housing Administration, which is part of the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance. This FHA insurance allows lenders such as Fairway Independent Mortgage to provide home loans with down payments as low as 3.5% of the purchase price.

FHA loan programs are particularly beneficial to those buyers with less available cash. The rates on FHA loans are generally market rates, while down payment requirements are lower than for conventional loans.

The benefits of FHA financing include:

• Only a 3.5 percent down payment is required.
• A Family member can make a gift to the homebuyer for the downpayment.
• The home seller can pay all the closing costs when an FHA loan is used.
• Lower monthly mortgage insurance premiums than convention PMI
• More flexible underwriting criteria than conventional loans
• No interest rate penalties for lower credit scores.
• Closing costs can be financed during a refinance.
• Loans are assumable to qualified buyers.

FHA Loans are very useful for First Time Home Buyers because of these benefits. FHA Loans are also very useful to refinance and consolidate debts into a low fixed rate loan, or for homebuyers that don't have perfect credit or twenty percent down payments.