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The FHA (Federal Housing Administration) is one of America’s top mortgage insuring agencies and since the administration’s birth; it has become the largest mortgage insurer in the entire world. Many people think that the FHA only provides or insures one type of home buying loan and a few refinancing options, but did you know the FHA backs over 12 different and unique home mortgage loan types? Today we thought we’d discuss each of those loan types and showcase how the FHA helps American’s across the country in all their home buying needs.

The 203b Home Mortgage Loan

This is the standard FHA home loan insurance that is used across the country. It is meant to help potential homeowners purchase their dream home as long as they meet the traditional FHA requirements. This type of mortgage loan is available for most home types that are characterized as one-to-four unit structures.

The 203h Mortgage

OLYMPUS DIGITAL CAMERAThis style of FHA home loan is available to those who may be disaster victims. In the wake of natural or manmade disasters, it may be necessary for homeowners to purchase a new home if theirs has been destroyed beyond repair.  That is where the 203h option comes in. This option is excellent for those whose home has been destroyed or needs to be rebuilt because it does not require a down payment and provides the best FHA options.

The 203k FHA Mortgage Loan

The 203k mortgage loan is a special loan the FHA offers to homeowners who may be purchasing a home in need of repairs. Also called a Rehabilitation Mortgage, this option provides homeowners the opportunity to add an addition $35,000 to their mortgage to pay for home repairs.

The 203n Mortgage

The FHA’s 203n program is made for those who may be looking to purchase a “unit in a cooperative housing unit,” (taken from the HUD website) in other words a future homeowner looking to buy one side of a duplex or one unit in a large tenant housing building much like those often found in New York City. All regular FHA requirements must be met for homeowners to utilize this loan option.

The 248 Home Mortgage Option

This FHA mortgage insurance option is specifically for those looking to purchase a home that is located on an Indian reservation or on other restricted land. This loan option finds the lender working a considerable amount with the tribe who may own the land, requiring permission and a meeting of tribal land standards for the home purchase.

The 255 Home Equity Conversion Mortgage (HECM)

The 255, is the only home equity reverse mortgage loan that is government backed by the FHA. Commonly used by America’s senior citizens who are looking to use the equity they have already acquired in their homes to supplement their monthly income, this type of loan requires a FHA approved lender and a fair amount of home equity.

The EEM FHA Home Loan Option

medium_3725844008Similar to the 203k FHA ensured loan, the EEM (Energy Efficient Mortgage) program works to allow homeowners to finance for the cost of making a home more eco-friendly and energy efficient.

Other FHA Insured Home Loans

The FHA also has programs in place that ensure home mortgages for several unique home types. This can include condominiums, manufactured homes, mobile homes and homes that are located in urban renewal areas. We hope this has been informational and opened your eyes to the world of mortgage insurance options the FHA can provide to potential homeowners. If you have further questions, please contact one of our professional loan officers

Photo Credit: Gina Donaue, Wayne National Forest

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