FHA Loans Requirements, Limits And Rates For 2022

FHA loan is a type of government-backed mortgage loan that can allow people to buy a home with looser financial requirements. 

What Is An FHA Loan?

Federal Housing Administration, is an agency under the jurisdiction of the Department of Housing and Urban Development.

It's been gathered that the loans are available with lower minimum credit score limits and also low down payment options.

Benefits of FHA loans:

1. Lender can accept a lower down payment.

2. FHA loan is available to people that have a bankruptcy. 

3. The Credit score requirements are lower compared to other loans.

4. Their Closing costs can be rolled into your loan

FHA Loan Requirements

The following are the requirements necessary to obtain FHA loan... 

1. There must be an inspection whether the property meets minimum standards.

2. You must occupy the property you want to buy within 60 days. 

3. You can only get a new FHA loan if the home you consider will be your primary residence. 

4. An FHA-approved appraiser must have appraised the home you consider to buy

FHA Loan Limits

There is a limit to what you can borrow for an FHA loan. According to the Department of Housing and Urban Development, the maximum FHA lending amount for high-cost areas is up to $970,800.

FHA Mortgage Insurance

Mortgage insurance is put into place to insure your FHA lender against losses in case you default on your loan.

This means that you have to pay a mortgage insurance premium (MIP) for an FHA loan.