FHA Loans

A FHA loan is a mortgage offered by private lenders and backed by the Federal Housing Administration (FHA). FHA loans make buying a home more affordable with competitive interest rates, low down payments, and flexible credit terms. It can be easier to qualify for an FHA loan compared to a conventional mortgage.

Highlights of the FHA Loan Program

Low Down Payment

An FHA loan is typically one of the easiest types of home loans to qualify for because it allows a low down payment and less-than-perfect credit. An FHA mortgage has a maximum loan-to-value ratio of 96.5 percent, meaning you only need a 3.5 percent down payment.

Credit Score

Because of their low credit and down payment requirements, FHA loans are typically much easier to qualify for than conventional loans and make the most popular type of first-time homebuyer loan used to purchase a home.

Competitive Rates

Unlike conventional home loans, FHA loans are government-backed, which protects lenders against defaults, making it possible for them to offer prospective borrowers more competitive interest rates on traditionally more risky loans.


FHA home loans are assumable, which means that if the borrower decides to sell the house, the new buyer can take on the loan in their place. Such a feature can also be very useful, for instance, if they need a co-signer in order to buy a house but later want to assume full responsibility for the loan when they get sufficient funds.

Benefits of a FHA Refinance

FHA Refinance

Unlock the cash from your house. Want to get cash out with an FHA loan? If you have enough home equity, an FHA cash out refinance can provide a good source of funds to use for just about any purpose. Popular reasons for refinancing with cash out include: paying off credit cards, debt consolidation, home improvement, and money for personal expenses.

FHA Streamline Refinance

The FHA Streamline Refinance Program is a fast and easy way to lower your payments on an FHA mortgage. It’s easier to qualify for an FHA Streamline Refinance because standard verifications are usually not required and credit guidelines are flexible. Another advantage of streamline refinancing is that a home appraisal may not be required.


  • By refinancing your current mortgage loan, your total finance charges may be higher over the life of the loan
  • Best Capital Funding is not affiliated with or acting on behalf of or at the direction of FHA or the Federal Government