Insured by the Federal Housing Administration, FHA loans are common mortgage programs due to their lower income and credit score requirements than conventional loans. Once an FHA loan is issued by a mortgage lender, the Federal Housing Administration guarantees the loan. Borrowers then pay for the guarantee through mortgage insurance premium payments to the Federal Housing Administration. FHA loans require two types of insurance payments. The Upfront Mortgage Insurance Premium is paid when you are granted the loan, or it is worked into the mortgage, while, despite its name, the Annual Mortgage Insurance Premium is a monthly cost.
FHA loans are ideal for homebuyers with moderate incomes and less than perfect credit scores, and they can be customized to fit a variety of homebuyer backgrounds. Coastal Custom Mortgage breaks each loan down into simple terms and walks clients through programs that would fit their specific needs. If you are interested in learning more about FHA loans or are looking for the best mortgage loan program for you, contact Coastal Custom Mortgage today.