An FHA loan, backed by the Federal Housing Administration, may be a good option for borrowers with a smaller down payment or lower credit score than those required for a conventional loan.
Government-insured loans increased in popularity in the wake of the recent financial crisis and became more mainstream, rather than being thought of as an option just for first-time buyers. FHA loan limits increased, down payment requirements lowered and changes were made to the qualifying criteria, making them a good alternative for more borrowers than in the past. In short, for more and more home buyers, an FHA loan may be the best choice.
Some features of FHA loans include:
Your Hawaii HomeStreet Loan Officer will help you determine if an FHA loan is the right option for you.