FHA Loans with No Down Payment
FHA insured loan is a US Federal Housing Administration mortgage insurance backed mortgage loan which is provided by a FHA-approved lender.
FHA insured loans are a type of federal assistance and have historically allowed lower-income borrowers to obtain a mortgage for the purchase of a home that they would not otherwise be able to afford. Great program for first time home buyers that allows 0% down payment.
To obtain mortgage insurance from the Federal Housing Administration, an upfront mortgage insurance premium (UFMIP) equal to 1.75 percent of the base loan amount at closing is required, and is normally financed into the total loan amount by the lender and paid to FHA on the borrower's behalf. There is also a monthly mortgage insurance premium (MIP) which varies based on the amortization term and loan-to-value ratio.