FHA Mortgage Loans

fhaGA FHA mortgage loans are popular for 1st time homebuyers because they only require a down payment of 3.5% and that money can also come from down payment assistance grants.  FHA does not make loans, rather they insure these loans that are made by private lenders. A lot of borrowers feel good knowing their loan is backed by the federal government.  These loans do require upfront mortgage insurance of 1.75% of your loan amount. This is normally financed into your loan. FHA also requires monthly mortgage insurance of .85%.  FHA also makes it easy to refinance an existing FHA loan by allowing a streamline refinance. It is possible to do a streamline refinance without qualifying all over again or getting a new appraisal.

Highlights of an FHA Loan

  • Great for people with not so perfect credit
  • Easier debt ratio requirements
  • Often requiring no reserves
  • Allows a gift for down payment
  • Allows non-occupant co-borrowers
  • Less than 2 years on the job is ok
  • Allows the seller to pay up to 6% of the purchase price toward your closing cost

Georgia FHA loans are not just for 1st time homebuyers.  Because FHA loans are more lenient than conventional loans, many people will choose this option if they have blemishes on their credit or have had a foreclosure or bankruptcy in their past.  FHA loans do have loan limits that are county specific, so call to find out the limits for your county.