- FHA mortgage loans are issued by federally qualified lenders and insured by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development.
Primarily, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments.
What is a FHA Loan?
FHA loans are an attractive option, especially for first-time homeowners in Eagan, as well as all of Minnesota, because it is insured by the Federal Housing Administration (FHA).
A FHA Loan is provided by the Federal Housing Administration and has a lower down payment.
- FHA loans are generally easier to qualify for than conventional loans.
- Lower down payment requirements .
- Cannot exceed statutory loan limits.
Benefits of FHA Loans
There are many benefits to FHA Loans beyond just a lower down payment. Typically the borrower can be approved with 3.5% down vs 20% that is required on other loan programs. The down payment can even be a gift from a “family member” defined as a child, parent, or grandparent of the borrower or borrower’s spouse or fiance.
The seller (or other interested third parties such as real estate agents, builders, developers, etc., or a combination of parties) may contribute up to 6 percent of the property’s sales price toward the buyer’s actual closing costs, prepaid expenses, discount points, and other financing concessions.
FHA Loan Eligibility
FHA Loans have more flexible requirements for qualification than a traditional conventional mortgage.
FHA Loan Limits
Different counties have different limits on how much you can borrow for an FHA Loan.
Get Pre-Approved for a FHA Loan
If you are a first time home buyer, or simply seeking a lower down payment in Eagan, or anywhere in Minnesota, contact MLP Home Mortgage Inc. at (763) 566-6300 for more information, or fill out the form on this page.