What is an FHA loan?

An FHA loan is a loan that is insured by the Federal Housing Administration (FHA). This type of loan is available to home buyers who are looking to purchase a house in Virginia. An FHA loan is a great option for those who may not have a large down payment saved up or for those who may have a lower credit score. FHA loans require a lower down payment than conventional loans. The down payment amount can be as low as 3.5-percent of the purchase price. This makes the loan more accessible to potential buyers who may not have a large down payment saved up. The FHA also typically offers more flexible credit requirements than traditional loan programs. An FHA loan also requires the payment of mortgage insurance, which helps to protect the lender by reducing the risk of default. Mortgage insurance is paid on a monthly basis and the amount of the premium increases as the loan balance decreases. In Virginia, FHA loans are an attractive option for home buyers. The loan provides flexibility and requires a lower down payment than conventional loans, making it a great choice for those with limited savings or lower credit scores. It is important to note, however, that FHA loans also require mortgage insurance, which can add to the overall cost of the loan.

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What is an FHA loan?

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