An FHA home loan is a mortgage insured by the Federal Housing Administration. Because of this insurance, AAA is able to offer FHA financing to applicants who may require greater underwriting flexibility.
The Advantage of a FHA loan:
Low down payment options available – as low as 3.5% of the purchase price.
Lower Closing Costs – seller may pay up to 6% of allowable costs and prepaid expenses. Gift funds may be allowed to pay for a portion of the down payment and closing cost.
Flexible terms – choose from a fixed-rate loan or an adjustable-rate mortgage.
Loan is assumable – when you eventually sell your home, the new buyer may take over the existing FHA interest rate.