FHA Loans are government insured loans to refinance
Federal Housing Administration is guaranteeing it will pay the mortgage if the borrower is unable to.
For first home buyers, this is great news. It requires only a lower down payment than traditional mortgages with a basic usually 3.5%.
Compare to Conventional mortgages the qualification process for FHA loans are often easier.
They may be ideal for you if you:
. Have great credit but have a 3.5% for down payment
. Have a good credit rating
. Have a debt-to-income (DTI) ratio that is acceptable to the FHA
. Planning to buy a low-priced home
. Have some financial back up to use toward buying a house
. Are a first-time homebuyer
