There are many types of home financing on the market today for clients from all types of financial backgrounds. An FHA loan is one very popular home financing option with great benefits like a low down payment. Steve Jakubisin – Sovereign Mortgage is an experienced mortgage professional who can create a hassle-free mortgage experience for you, helping you compare FHA loans with other options.Schedule a complimentary consultation to get started with Sovereign Mortgage today.
An FHA loan is a non-conventional loan. In short, that means that it is one of several types of loans insured through a government agency. In this case, that agency is the Federal Housing Administration (FHA), a division of the U.S. Department of Housing and Urban Development. This government program was created to inspire private lenders to lend to a broader range of clients with less-than-perfect financial history. Private lenders fund these loans entirely, but they have greater financial security in lending because the government reimburses any loans that default.
Other types of non-conventional loans include USDA (through the U.S. Department of Agriculture) loans and VA loans (through the U.S. Department of Veterans Affairs.
FHA loans and other non-conventional loans differ from conventional loans, which are not backed through the government. Both conventional and non-conventional loans have unique benefits to consider. And FHA loans have unique benefits when compared with other non-conventional loans.
This type of government-backed loan is popular for several reasons.
As stated, eligibility requirements are laxer than with traditional conventional loans. Baseline requirements for approval include:
If you have always dreamed of owning your own home but feared that your financial past or credit score may hold you back, think again. At Sovereign Mortgage, we care about our clients, and we work hard to help them get a yes on home financing. If you are considering an FHA loan or other mortgage option in Seminole County or surrounding Florida area, we can help. Contact us to schedule a complimentary consultation.