FHA Loans

What is an FHA Loan?

FHA loans fell out of grace for a few years, but since 2005 have rebounded! It's an institution that has been around since June 27, 1934. The Department of Housing & Urban Development folded the Federal Housing Administration (FHA) under its umbrella in 1965.

FHA loans began to lose favor in the late 1990s, when home values began to inch upwards, surpassing FHA mortgage limits, and sellers balked at FHA's stringent appraisal guidelines.

These loans are commonly refered to as a "First Time Buyer" loan, but that is not the case.  They are a great option for First Time buyers, but are not limited to only a first home purchase.  If you are a first time buyer, and have no or very small down payment please check out my first time buyer page by clicking HERE!

What are the Utah FHA Loan requirements?

• Two credit scores above a 640
• Down Payment of 3.5% of the purchase price
• The borrower must meet standard FHA credit qualifications.
• The borrower is eligible for approximately 96.5% financing and is able to finance the upfront mortgage insurance premium into the mortgage. The borrower will also be responsible for paying an annual premium. 
• Eligible properties are one-unit structures. (No income Properties)

FHA periodically changes its mortgage limits. As of January 1, 2009, the maximum mortgage limit in high-cost areas is 115% of local median prices, not to exceed $625,500. The maximum conforming loan limit is $417,000 for single-family residences nationwide. Your area could support a lower mortgage limit. To find your FHA mortgage Limit in Utah look below:

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