For those who are looking for a home loan you may have heard it can be difficult without a down payment of 20% or more. That is true but only in the traditional, conventional loan market. The good news for today's home buyers is that The Federal Housing Authority (FHA) provides loan programs requiring as little as 3.5% down.

FHA is a loan program that has been around since the 1930's but had fallen out of favor. Now however it has become the loan of choice with many advantages versus conventional loans. What are the advantages of an FHA loan?

  • FHA requires only 3.5% down payment
  • Unlike conventional loans, the entire down payment may come from a family gift. Family members can help the buyer qualify too.
  • Your FICO credit score has a minimal impact on qualification
  • The FHA interest rates are very competitive versus conventional financing
  • FHA approvals are easier to get
  • The loan limits are very high ... In Hawaii, FHA loans can be as high as $793,750!
  • No prepayment penalties
  • FHA loans are assumable

FHA loans may be obtained through FHA approved banks, mortgage companies, and mortgage brokers. Contact Alan Fentriss with Platinum Mortgage Partners at 808-927-3401. I'd be happy to help you with the loan to fit your needs, whether it's FHA, VA, or Conventional financing.