FHA loans are perfect for homebuyers looking for flexibility

FHA loans are mortgages issued by qualified lenders and insured by the Federal Housing Administration, a government agency within the U.S. Department of Housing and Urban Development. The FHA insures your loan, making the loan less risky for your lender, which allows the lender to offer you better terms.

Key Features of FHA Loans

Fits Many Lending Scenarios

Borrowers may benefit from the FHA loan because they often require a lower down payment than conventional loans – as low as 3.5%. Additionally, the same interest rates and many other loans are offered with an FHA loan.

More Favorable Loan Terms

The loan is less risky for your lender because the FHA insures it. This allows the lender to offer you better loan terms on you interest rates and down payments.

Lower Down Payment Requirements

FHA loans are favorable for many people. They are not just for those who have lower credit scores or need to put less money down, they are also for those looking for more lenient lending requirements.

What is a FHA Mortgage Loan?

FHA mortgage loans are an attractive mortgage solution for a purchase or refinance because today’s FHA mortgage rates are near historic lows. The guidelines are also flexible, allowing more people to qualify. Whether you have had credit issues in the past or are simply looking to limit your down payment to 3.5%, an FHA loan might be an ideal home financing solution.

FHA loans are often more affordable than conventional loans. Borrowers benefit from a much lower down payment – as low as 3.5%. Typically FHA loans offer the same interest rates as other loans.

FHA loans are not only for lower-income borrowers. FHA loans are available to everyone. There is no maximum income restriction associated with FHA loans, but borrowers do need to establish proof of income and assets by submitting proper documentation. FHA loans are not only for first-time buyers, either. Whether borrowers are making their first home purchase or third, FHA loans are still a home financing option

FHA Loan Options

Purchase loan

If you are buying a home, your down payment can be as low as 3.5% of the price of the home. FHA also allows seller concessions up to 6% of your home purchase price.

Refinance loan

Refinance up to 97.75% of your home value. FHA even offers up to 85% cash-out.

Debt Consolidation

If you are swamped with too many monthly payments – credit cards, personal loans, car payments, 2nd liens, and other debt – now may be the best time to consolidate that debt into a single mortgage payment using an FHA loan. Your single, consolidated payment may be much lower than the total amount of individual payments you are making now. Plus, the interest may be tax deductible (consult your tax advisor).

FHA 203K Rehabilitation Loans

Creative solution for those looking to purchase or refinance a residence who plan on rehabilitating the property.

Why trust Southern Trust with your home financing?

Founded in 1998, Southern Trust Mortgage is a full-service mortgage lender. We offer diverse mortgage products designed to meet any home financing need. Our continued success is a result of the outstanding customer service we offer our clients and business partners. All of our loans are expedited through local processing, underwriting, and closing agents. Our industry-leading service truly sets Southern Trust Mortgage apart.