A perfect loan for first time home buyers or individuals who need a low down payment option.

The U.S. Department of Housing and Urban Development (HUD) oversees F.H.A. loans (Federal Housing Administration).

Here are the features:

• Requires only 3.5% down
• The seller can pay up to 6% of the purchase price towards buyers’ closing costs.
• Mortgage insurance is required and is a part of the monthly payment no matter the amount of down payment.
• Credit scores requirements are 620 and above .
• Fixed and adjustable rate loans are available, 30 year and 15 year amortizations.
• These loans are assumable and there are no pre-payment penalties.
• There are no income limits like there are for U.S.D.A. loans.