- FHA Loan:
- FHA mortgage loans are issued by federally qualified lenders and insured by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development.FHA loans are an attractive option, especially for first-time homeowners:
- Generally easier to qualify for than conventional loans.
- Lower down payment requirements.
- Cannot exceed statutory loan limits.
Types of FHA Loans:
Home Equity Conversion Mortgage – a reverse mortgage program that helps seniors aged 62 and older convert the equity in their homes to cash while retaining title to the home. You can choose how to withdraw the funds, either as a fixed monthly amount or a line of credit (or a combination of both).
FHA 203k Improvement Loan – factors in the cost of certain repairs and renovations into the loan. This one loan allows you to borrow money for both home purchase and home improvements, which can make a big difference if you don’t have a lot of cash on hand after making a down payment.
FHA’s Energy Efficient Mortgage – similar, but aimed at upgrades that can lower your utility bills, such as new insulation or the installation of new solar or wind energy systems. The idea is that energy-efficient homes have lower operating costs, which lower bills and make more income available for mortgage payments.