What is an FHA Loan?

A Federal Housing Administration (FHA) loan is a government-insured loan designed to make purchasing a home or refinancing an existing mortgage more affordable. With an FHA loan, a borrower without ideal credit can obtain a home mortgage with as little as a 3.5 percent down payment.


Though FHA loans aren’t issued by the federal government, they are backed by it. Should a borrower be unable to repay the loan, the FHA will fully reimburse the lender. This allows FHA-approved lenders to provide home financing to less-than-affluent borrowers who might otherwise be unable to attain a loan.


Since its inception in 1934, the FHA, an agency of the United States Department of Housing and Urban Development (HUD), has been helping Americans achieve their dreams of becoming homeowners. Over the years, the FHA and HUD have insured over 47.5 million home mortgages and 48,500 multifamily project mortgages. As of 2018, the FHA’s portfolio includes 7.95 million insured single family mortgages and 14,452 multifamily mortgages.


The FHA has been instrumental in making Americans among the best-housed people in the world and we at Global Equity Finance are proud to contribute to this great legacy.

Benefits of FHA Loan

Low Down Payment​

A high down payment can prove to be a serious barrier for many looking to purchase a home. With a down payment as low as 3.5 percent, an FHA loan can help you overcome this obstacle.

Lenient Credit Requirements

Many loans require borrowers to have a high credit score, a feat which can take years to accomplish —especially if your credit history is brand new or damaged. FHA loans are available for borrowers with scores as low as 500.

Affordable Interest Rates

When dealing with borrowers who have low down payments and less-than-ideal credit histories, lenders often charge higher interest rates on mortgages. In the case of FHA loans, government insurance works to keep interest rates on your mortgage down.

Refinancing Options

In addition to home purchase mortgages, FHA loans are available in the form of refinancing loans. This can provide you with an affordable option when it comes time to replace your current mortgage with a new one.

FHA Loan Options

FHA Fixed-Rate Mortgage

FHA loans are available in the form of a fixed-rate mortgage, wherein interest rates are consistent and therefore predictable.

FHA Adjustable-Rate Mortgage

An FHA ARM is a type of loan where the interest rate adjusts periodically based on a pre-determined index.

FHA Streamline Refinance Loans

Refinancing from an existing FHA loan into a new one is an easy process and can result in a lower, more manageable interest rate.


“FHA loans can often be quicker and easier to obtain than a conventional loan and have significantly lower interest rates.”

Roy Koldaro

NMLS ID #1241846 VP of Lending

VA Fixed Rate Mortgage ​

Perfect for borrowers looking for interest rate stability and affordable payments for the life of the loan. Buy or build a single family home, condo unit in VA-approved development, or manufactured home/lot.

VA Adjustable Rate Mortgage (ARM)

If you expect to receive Permanent Change of Station (PCS) Orders within five years, a 5/1 VA ARM can offer upfront savings and better flexibility for when you relocate.

VA Streamline Refinance (IRRRL)

The VA Interest Rate Reduction Refinance Loan (IRRRL) allows you to refinance your current VA mortgage to a lower interest rate. Streamlined to make refinancing fast and painless, VA does not require verification of income, employment, bank accounts, credit score, or home appraisal.

VA Cash Out Refinance

For homeowners who want to cash-out home equity to use for expenses such as paying off debt, school tuition, or home improvements. This option can also refinance a non-VA loan (such as FHA or USDA) into a VA loan, and finance up to 100% of the property value.


VA loans are an exceptional opportunity for our Veterans because they offer the lowest rates in the nation, there is no down payment, and fees are capped depending on status. We also offer a $1,000 best loan guarantee: no other lender will beat our Veterans loan programs.

Roy Koldaro

V.P. of Lending

FHA Loan Qualifications

Credit: To qualify for an FHA mortgage with a 3.5 percent down payment, an applicant must have a credit score of 580. Applicants with scores between 500 and 579 are required to pay 10 percent. Scores below 500 are generally ineligible, although the FHA will make allowances under certain circumstances.


Down payment: The down payment on an FHA mortgage must come from an acceptable source including, but not limited to, personal savings, gifts and grants. Parties that would benefit from the transaction, such as a seller or lender, cannot provide the down payment.


Income: Documentation of employment and income such as pay stubs, W-2 forms and tax returns must be presented to lenders as proof that you can afford to make payments on your FHA loan.


CAIVRS clearance: The Credit Alert Interactive Verification Reporting System (CAIVRS) is a government database that keeps a record of anyone who has defaulted on a government loan, owes back taxes or carries other federal debt. If you are listed in CAIVRS, your access to an FHA loan will be restricted until your debt is cleared.


Type of residence: FHA loans can only be used to buy a primary home for yourself or a family member. Secondary and vacation homes are ineligible for FHA mortgages.

Loan program

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