An FHA insured mortgage is a US Federal Housing Administration home loan backed by mortgage funding which is offered by an FHA-approved loan provider. To get home mortgage insurance from the Federal Housing Administration, an upfront home mortgage insurance premium (UFMIP) equal to 1.75 percent of the base loan amount at closing is called for, and is normally funded into the total finance quantity by the loan provider and also paid to FHA on the customer’s part.
Some FHA programs were supported by the federal government, but the objective was to make it self-supporting, based on insurance premiums paid by consumers. Over time, exclusive home mortgage insurance policy (PMI) companies came into play, as well as currently FHA primarily serves people that can not pay for a traditional down repayment or otherwise do not certify for PMI.
Whether you are looking for an FHA loan in Mcallen, TX or anywhere down in the Valley, we are here to help you.