FHA Loans

What is an FHA Loan?

Sun American Mortgage is your FHA loan expert.

The Federal Housing Administration (FHA) was established in 1934 to improve housing standards and conditions and to provide an adequate home financing system through insurance of mortgages. Families that would otherwise be excluded from the housing market were finally able to buy the homes of their dreams.

An FHA loan allows you to buy a house with as little as 3.5% down, instead of the higher percentages required to secure many conventional loans. Taking advantage of the FHA loan program is a great way for first time buyers, or anyone with a shortage of down payment funds, to buy a home.

The FHA does not make home loans--it insures them. If a home buyer defaults, the lender is paid from the insurance fund. This is a perfect mortgage solution for those starting out or those having a tough time qualifying for conventional loans.

What is an 203K Loan?

FHA 203(K) loan provides a cost effective, single close loan that enables borrowers to purchase a home that may need repairs or refinance their existing home for the purpose of remodeling. The loan amount is based on the "as-completed" value of the home.

• Improvements can be a minimum of $5,000, with no maximum as long as the property value supports the improvements being made.
• Improvements can include, but are not limited to: Roof repair/replacement, interior/exterior painting, purchase of appliances; addition of exterior decks; replacement of doors/windows.

Sun American Mortgage is your FHA 2003(K) loan expert.