The FHA is part of the United States Department of Housing and Urban Development (HUD).
The Federal Housing Administration (FHA) administers a program of loan insurance to expand homeownership opportunities. FHA provides mortgage insurance to FHA-approved lenders to protect these lenders against losses if the homeowner defaults on the loan. The cost of the mortgage insurance is passed along to the homeowner. The standards for qualifying for these loans are generally more flexible than for conventional loans.
FHA loans have been helping individuals become homeowners since 1934. The Federal Housing Administration (FHA) – which is part of HUD – insures the loan, so your lender can offer you a better deal. These loans offer low down payments, low closing costs, and easy credit qualifying.
FHA loans are great product for first time home buyers because down payments can be as low as 3.5% of the purchase price, and most of your closing costs and fees can be included in the loan. They are available on 1-4 unit properties. FHA loans can also allow you to buy a fixer-upper, this allows you to buy a home, fix it up, and include all the costs in one loan. Or, if you own a home that you want to re-model or repair, you can refinance what you owe and add the cost of repairs – all in one loan. There are also FHA Energy-Efficient Mortgages; borrowers can include the costs of energy improvements.
For individuals 62 or older that live in their home, and have equity a FHA Reverse Mortgage might be right for program for them. It lets the borrower convert a portion of the equity into cash. FHA also has financing for mobile homes and factory-built housing. FHA has two loan products – one for those who own the land that the home is on and another for mobile homes that are – or will be – located in mobile home parks.

To learn more about FHA loans speak with a mortgage professional to discuss your options.

For downpayment assistance State and local governments offer programs that can help, click link here.

Your loan approval depends 100% on the documentation that you provide at the time of application. You will need to give accurate information on:


  • Complete Income Tax Returns for past 2-years
  • W-2 & 1099 Statements for past 2-years
  • Pay-Check Stubs for past 2-months
  • Self-Employed Income Tax Returns and YTD Profit & Loss Statements for past 3-years for self-employed borrowers


  • Complete bank statements for all accounts for past 3-months
  • Recent account statements for retirement, 401k, Mutual Funds, Money Market, Stocks, etc.


  • Recent bills & statements indicating account numbers and minimum payments
  • Landlord’s name, address, telephone number, or 12- months cancelled rent checks
  • Recent utility bills to supplement thin credit
  • Bankruptcy & Discharge Papers if applicable
  • 12-months cancelled checks written by someone you co-signed for to get a mortgage, car, or credit card, this indicates that you are not the one making the payments.


  • Drivers License
  • Social Security Card
  • Any Divorce, Palimony or Alimony or Child Support papers
  • Green Card or Work Permit if applicable
  • Any homeownership papers

Refinancing or Own Rental Property

  • Note & Deed from any Current Loan
  • Property Tax Bill
  • Hazard Homeowners Insurance Policy
  • A Payment Coupon for Current Mortgage
  • Rental Agreements for a Multi-Unit Property

FHA Streamline Refinance

Lower your rate with a simple Streamline Refinance:

No appraisal
620 minimum FICO score
No income verification
Verification of assets required if needed to close
Certification that the borrower is employed and has income.
Must have made at least six (6) payments on existing FHA Loan
If subordinate loan financing is remaining in place, the maximum combined loan to value (CLTV) ratio is 125%
FHA 203(k) Streamline Loan
Purchase and Rehab up to $35,000 all in one loan:

  • Low cash investment only 3.5% of total loan amount based on FHA 1st, MIP, and 203(k) improvements.
  • 640 minimum FICO required
  • Owner occupied single-family homes, PUDs, condominiums, and manufactured homes
  • Maximum loan amount $417,000 (varies by county, call for details)
  • Can be combined with an Energy Efficient Mortgage (EEM)
  • Appraiser will determine “as-is” and “improved value”
  • 50% of funds dispersed at closing, and construction begins within 30 days
  • Up to $35,000 above purchase price, acceptable improvements include:
    • Roof repair/replacement
    • Purchase of appliances
    • Minor renovations
    • Painting
    • Safety upgrades
    • Replacement of windows & doors