Insured by the Federal Housing Administration (“FHA”), a government agency that’s part of the U.S. Department of Housing and Urban Development, these loans are a safe, viable option for building credit in today’s tough real estate market. Your down payment can be as low as 3.5% of the purchase price. In many cases, your closing costs and fees can be included in the loan. The FHA allows home sellers, builders, and lenders to pay some of your closing costs, including appraisal, credit reports and/or title expenses. Nice!

Two types of Mortgage Insurance Premium payments are required on all FHA loans. The first is the upfront premium–and the second is the annual premium. Contact a Commerce Home Mortgage adviser to learn more about these premiums.