Maine FHA Loans

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FHA Loan Requirements

FHA Loan Limits

FHA Loan Types

FHA Streamline Refinance

FHA Credit Requirements

FHA 203K Loans

Fixed Rate Mortgages

Adjustable Rate Mortgages

Conforming Loans

Down Payments

Private Mortgage Insurance

Credit Scoring

VA Loans

Rural Housing Loans

Mortgage Glossary

Home Equity Lines of Credit


FHA is the Federal Housing Administration, which provides mortgage insurance for loans that are done by FHA-approved lenders, including single family and multifamily homes. FHA insured loans require very little cash investment to close and are more flexible in regards to the calculations for income and payment ratios. FHA loans require less than conventional loans in order to allow lower and middle-income families the ability to buy homes. All loans require a credit check, but unlike conventional loans, FHA loans allow lower credit scores and borrowers with no credit can sometimes qualify if there is a co-signer with credit available. Income is also required to prove that the borrower can make monthly payments. Once the income is established the debt to income ratio is calculated, which is an accurate amount of money available after debts are removed.

Similar to conventional loans, there are several types of FHA loans, including conventional fixed rate mortgages which have a fixed rate and payment amount throughout the term of the loan and will have no amount due at the end. FHA fixed rate mortgages only require down payments of 3.5% of the total loan amount, which is much lower than that required of a non-FHA fixed rate mortgage. There are also adjustable rate mortgages which fluctuate with interest rates and payment amounts, Jumbo fixed rate mortgages which are for loans over $417,000, and balloon mortgages, which allow smaller monthly payments but require a lump sum due at the end of the term.