FHA mortgage loans are part of a nationwide lending program that allows Americans who may not qualify for a conventional mortgage to purchase a home. The Federal Housing Administration, more often known as FHA, is operated by the U.S. Department of Housing and Urban Development (HUD). An FHA mortgage is an attractive proposition for anyone who qualifies for the opportunity to make a lower down payment and pay reduced closing costs when purchasing a home. These are just part of the deal you get with an FHA mortgage. There are many other reasons to want to learn more about FHA mortgage loans and who qualifies for them. What is an FHA mortgage? FHA will not offer you a mortgage loan, it only provides mortgage insurance for a loan you get from a mortgage lender who is approved by the FHA. This government-backed insurance is guaranteed to protect a lender against any default by homeowners. Under the terms of FHA insurance, any FHA-approved mortgage lender can file a claim against any loss incurred due to failure to repay the loan. This US government scheme does not cost American taxpayers any money. All insurance money collected through the program is held in a single operating account. FHA provides different types of mortgage insurance, depending on your need, and offers a range of insurance for first-time homebuyers, multifamily homes, refinances and other types of mortgages. Who is eligible for an FHA mortgage? An FHA mortgage is designed to help anyone who has earned a regular salary for at least twelve months become a homeowner. Part-time employees may also qualify if they have held the same job for at least two years. Child support income, alimony, disability… half the paper… the loan. Conventional lending, however, requires private mortgage insurance (PMI). This is calculated based on several factors: credit score, down payment, debt-to-income ratio, etc. Closing costs are generally lower with FHA than with conventional mortgage loans. Strict terms apply with FHA mortgage loans, limiting the types of charges the lender can add to your closing costs. How do you apply for an FHA mortgage? AMCAP Mortgage is a “Full Eagle” FHA approved lender. What does this mean for a borrower? We originate, process, underwrite and fund our loans according to strict FHA guidelines. With so many benefits to be had when you qualify for an FHA mortgage, it makes a lot of sense to consider FHA mortgage loans as a better, lower-cost alternative to conventional mortgages. Contact one of the FHA loan specialists or apply online.