FHA loans, insured by the Federal Housing Administration, come in various types to suit different homebuyer needs and housing situations. These loan types include:
The most common FHA loan, used for the purchase or refinance of a primary residence. Offers a low down payment, flexible qualifying guidelines, and the option for a fixed or adjustable-rate mortgage.
A reverse mortgage program for homeowners aged 62 and older. Allows seniors to convert the equity in their homes to cash while retaining homeownership.
Designed for properties that need repairs or renovation. Combines the cost of home improvements and the home purchase price into a single loan.
Helps homeowners save on utility bills by financing energy-efficient improvements as part of the FHA-insured home purchase or refinancing mortgage. The cost of energy-efficient upgrades is added to the overall mortgage.
Ideal for borrowers who expect their income to increase. Offers lower initial monthly payments that gradually rise over time.
Used to purchase a unit within an FHA-approved condominium project. Follows certain guidelines and requirements specific to condominiums.
Provides a lower initial interest rate compared to fixed-rate mortgages. The rate adjusts at predetermined intervals based on market conditions.
An expedited refinance option for homeowners with existing FHA mortgages. Requires less documentation and no appraisal, designed to lower the interest rate or change the term with minimal hassle.
Allows homeowners to refinance their existing mortgage by taking out a larger mortgage and getting the difference in cash. Typically used for home improvement, paying off debts, or other financial needs.
Assists victims in presidentially designated disaster areas to recover by making it easier to get mortgages and become homeowners or re-establish homeownership.
Helps homeowners with non-FHA adjustable-rate mortgages to refinance into a fixed-rate FHA loan.
Each of these FHA loan types serves different purposes and addresses specific needs or circumstances of borrowers. It's important to understand the details and requirements of each type to determine which is the most suitable for your situation. Consulting with a lender who offers FHA loans can provide more personalized guidance.