Regulations and Fees
While the FHA loan is a federal program, the government generally does not make direct loans to applicants. Private lenders, including BBMC Mortgage, finance the loan while the Federal Housing Administration with the Department of Housing and Urban Development (HUD) offer an insurance guaranty. This guaranty provides an incentive for private lenders to offer loans with better terms, and protects them in the event of a customer default.
In most parts of the country, applicants who qualify for the FHA Loan can purchase a home worth up to $417,000 after the 3.5% or 5% minimum down payment. To find out the FHA Loan Limit in your area, give BBMC a call at 1-800-24-RATES.