The FHA loans are one of the most sought-after options many first-time homebuyers prefer using for funds. The loan type requires a low down payment, relaxing credit requirements, and low-interest rates, so it is an ideal funding source. The best part is that it has multiple types, and you can choose the one that best fits your needs.

What is an FHA Loan

The FHA loans are Federal Housing Administration-backed mortgages that make accessing and getting home loans easier for people who don’t qualify for the conventional loan.

FHA Loan Options

FHA Basic Home Mortgage Loan 203(b)

The primary home mortgage loan, as the title suggests, is the typical type of FHA loan many people consider applying for. The simple mortgages come with the specific requirements of the FHA loans.  

FHA Energy Efficient Mortgages 

FHA energy efficient mortgages provide funds to finance energy-saving devices. It includes financing wind technology and solar panels.

FHA Rehabilitation Mortgage Insurance 203(k) Loan

FHA rehabilitation mortgage insurance 203(k) loans are the type that provides a large amount of funds ($35,000) as a mortgage to use for improvements, upgrades, and repair costs. The option is convenient for you if your home inspector has found cosmetic and remodeling issues that need an immediate fix. You can use the funds for upgrades like repairs, carpeting, and new air conditioning.

FHA Graduated Payment Mortgage 

The graduated FHA payment mortgage is beneficial if you're likely to earn more in the coming years. It increases mortgage payments by 2 percent for 10 years. That allows you to begin with the affordable payments that increase with your earnings.

FHA Disaster Victims Mortgages 203(h)

If your home has experienced a natural calamity and you’re planning to move into a new one, a disaster victim’s mortgage is perhaps the right option. The FHA loan type doesn’t have any down payment requirement. 

FHA Adjustable Rate Mortgages

FHA adjustable-rate mortgage comes with flexible interest rates that keep changing during the loan period. They have low-interest rates compared to fixed-rate mortgages. If your income is likely to increase in the future or you don’t want to own your primary residency for more than one or two years, FHA adjustable-rate mortgage is a good option. 

FHA Hawaiian Home Lands

You can apply and qualify for the FHA Hawaiian home lands if you live in Hawaiian and planning to buy a home there.

FHA HECM (Home Equity Conversion Mortgage) Seniors

Commonly known as a reverse mortgage, HECM allows you to use some portion of home equity to buy a home. However, the mortgage isn’t recommended in typical cases.

FHA Manufactured Housing (Title I)

Did you know that you can finance your mobile and manufactured home with an FHA loan?

A manufactured housing loan allows you to fund property improvement if your home passes inspection and you have lived in it for 90 days.

FHA Streamline Refinance

To refinance your current FHA-insured mortgage, you can use FHA streamline refinance. The loan type has minimal documentation and credit checks.

FHA Manufactured Home & Lot Combination

 You can finance land and manufactured home with an FHA manufacture and lot combination. The option is great if you want to build a home on a land parcel but don't have sufficient funds.

FHA Urban Renewal

The loans are applicable and qualifiable for the govt designated renewal areas. The loan can help you repair and improve the local housing.

FHA Title I Home Improvements

 If you’re looking for the funds to improve the liveability of the home you want to buy, applying for FHA Title 1 Home improvement loan can help you.

How to Determine the Right Loan Type for You

If your credit scores aren’t perfect or you don’t have enough down payments, choose FHA loans to finance your home. However, if your credit scores are good and you have sufficient savings, a conventional home loan makes a wiser choice.