This is a HUD or government insured loan that allows buyers to purchase a home for only 3.5% down. The FHA loan has maximum loan limits for each county which are significantly lower than conventional limits (Utah County’s limit is $323,750). An FHA loan is excellent for someone who has less money to put down, and someone who has higher debt-to-income ratios, or someone whose credit is less than perfect.
- Only 3.5% down
- Flexible qualification guidelines
- Debt-to-income ratio as high as 55%
- Requires up-front & monthly mortgage insurance (MI)
- Maximum loan limits vary by county
- MI required for the entire life of the loan
- Allows for no cost, no qualifying “streamline” refinance