Mortgage Programs
FHA Loans
FHA Loans are government-backed, and offer lower down payments and flexible qualification requirements – making home ownership more attainable.
FHA Loans Provide Buyers With Flexible Purchase Options
The Federal Housing Administration (FHA) is an agency within the U.S. Department of Housing and Urban Development (HUD). Established by the National Housing Act on June 27, 1934, the FHA facilitated home financing, improved housing standards, and increased employment in the home-construction industry in the wake of the Great Depression.
FHA loan flexibility allows for expanded access to mortgage credit for a wider range of individuals. Since then, millions of U.S. families have become homeowners with FHA loans!
Today, the FHA’s primary function is to insure home mortgage loans made by banks and other private lenders, thereby encouraging them to make more loans to prospective home buyers. FHA loans are federally insured.
FHA loans have low down payment requirements, allowing for greater flexibility for buyers in high-cost markets. They also offer first-time homebuyers the option to purchase a home with less cash upfront.
FHA Loan Guidelines
FHA loans offer a number of guidelines that make homeownership more accessible and affordable for a broader range of individuals. Some of the guidelines include:
- Fixed and adjustable rate options
- Minimum down payment of 3.5%
- Up to 6% seller’s concessions to help pay your closing costs
- Allows gift funds to cover down payment and closing costs
- Primary residence only for FHA loans, but multi-family homes are eligible
- Streamlined refinance available
- Assumability may be available
FHA loans limits vary for each county/state. They are available on the Housing and Urban Development website:
Making FHA Loans Work For You
FHA loans are frequently utilized by first-time homebuyers who may have limited savings for a down payment or may not meet stricter credit or qualifying requirements for other loan programs. GRB is a Direct Endorsement (DE) Underwriter for the FHA. This designation allows GRB to make credit decisions on behalf of the FHA without the need for additional review by the agency.
To become a DE Underwriter, individuals must meet specific qualifications set by the Department of Housing and Urban Development. Once approved, DE Underwriters have the authority to review borrower applications, assess creditworthiness, verify documentation, and approve FHA loans within the parameters established by FHA guidelines.
GRB’s FHA borrowers secure a number of advantages through our DE Underwriters:
- A deep understanding of FHA lending guidelines, ensuring each application receives a thorough review aimed at securing approvals for qualified borrowers.
- DE authority streamlines the loan approval process, providing faster loan processing times and more efficient closings for borrowers.
- GRB provides a full preapproval process for FHA borrowers, strengthening their ability to make a compelling offer in a competitive homebuying market.
Contact Our Mortgage Team
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