Increase your borrowing power - Housing Counseling - An FHA is not a loan, is a guarantee backed by the Federal Housing Administration for your mortgage. The required down payment is three to five percent of the FHA appraisal value or purchase price, whichever is lower. Maximum loan limit varies with the average cost of housing in a given area.
The FHA does not require a flawless credit report, nor does it set maximum income limits. You can even add closing costs to the mortgage and borrow the entire amount. The main drawback to FHA loans is that you must purchase private mortgage insurance. This reduces the risk of defaulting on an FHA insured loan.
You can apply for an FHA loan with an approved lender. They can also give you more information on the specifics of this type of loan.
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