Pamela Madore Mortgage
Who Can Qualify For An FHA Mortgage? Consider an FHA.
Don't be fooled. Many people think that you have to be low-income. Others think you have to be a first-time homebuyer. Neither are true.
An FHA loan is a federally insured loan. FHA stands for Federal Housing Administration. The loan does not come directly through FHA. The loan is comes from a lender or bank.
The connection is through mortgage insurance. FHA mortgage insurance's acronym is MIP which is mortgage insurance premium. The MIP is both an upfront premium that is allowed to be financed into the loan. There is additionally a monthly premium that is part of your escrow account. (taxes, insurance, MIP)
In the event that the borrower defaults on the loan, the mortgage premium serves to offset the loss to the original lender.
That is a simple version of how the program works.
So. Who can qualify?
The orginal lender has to follow FHA guidelines in order …