Loan Programs → FHA Loans

FHA Mortgage Options Built for Real-Life Homeownership

FHA financing can provide an accessible path to buying, refinancing, renovating, or building an eligible primary residence. Northgate Mortgage helps borrowers compare fixed-rate, adjustable-rate, temporary-payment, refinance, renovation, construction, and specialty FHA options through participating lenders.

Options for eligible primary residences, including qualifying one- to four-unit properties.
Fixed-rate and approved FHA adjustable-rate structures.
Purchase, refinance, renovation, construction, manufactured-home, and disaster-recovery programs.

Apply Today Check FHA Eligibility Get Pre-Approved Speak With an FHA Loan Specialist

Program Overview

An FHA loan is a mortgage made by an approved lender and insured by the Federal Housing Administration. FHA insurance helps protect the lender, while the borrower remains responsible for repaying the mortgage and meeting all loan obligations.

FHA financing is generally intended for a borrower who will occupy the property as a primary residence. Mortgage insurance is normally required, and the borrower, property, occupancy, loan purpose, and transaction must meet current HUD and lender standards.

FHA is not only a first-time homebuyer program. Eligible repeat buyers and current homeowners may also use FHA financing when the program fits their goals and qualifications.

Loan Options We Offer

FHA Fixed-Rate Purchase Loan

A fixed-rate FHA mortgage keeps the note rate unchanged for the entire loan term. The principal-and-interest portion of the payment remains predictable, making this option appropriate for borrowers who value long-term payment stability.

May be used to purchase an eligible owner-occupied property.
Commonly available with several repayment terms, subject to lender offerings.
FHA mortgage insurance, property, appraisal, and occupancy requirements apply.

FHA 1-Year Adjustable-Rate Mortgage

The initial interest rate is generally fixed for one year and may adjust annually afterward. Future changes are governed by the loan index, margin, adjustment schedule, and FHA rate caps.

The rate and monthly payment can increase after the initial period. The borrower should review the maximum possible payment, not only the introductory payment.

FHA 3/1 ARM

The interest rate is fixed for the first three years and may adjust once each year after that. This structure may be considered by a borrower who understands the adjustment risk and expects the initial fixed period to match a shorter ownership or refinancing strategy.

FHA 5/1 ARM

The interest rate is fixed for the first five years and may adjust annually afterward. A 5/1 ARM provides a longer initial fixed period than the one-year or 3/1 structure while retaining adjustable-rate risk later in the term.

FHA 7/1 ARM

The interest rate is fixed for seven years and may adjust once per year after the fixed period. Availability, qualification, pricing, and caps depend on the participating lender and current FHA requirements.

FHA 10/1 ARM

The interest rate is fixed for ten years and may adjust annually afterward. This option provides the longest standard initial fixed period among the FHA hybrid ARM structures, where offered.

FHA Temporary Buydown

An eligible temporary buydown uses funds contributed by a permitted party to reduce the borrower's required payment during an initial period. Common illustrations include 1-0, 2-1, and 3-2-1 schedules.

A 1-0 structure temporarily offsets an amount calculated using a rate one percentage point below the note rate during the first year.
A 2-1 structure temporarily offsets an amount calculated two percentage points below the note rate in year one and one point below in year two.
A 3-2-1 structure, when eligible and offered, steps from three points below to two points below to one point below before the full payment applies.

A temporary buydown is a payment feature, not a separate loan type. The mortgage note rate does not change, and the borrower must qualify under the applicable FHA and lender rules.

FHA Rate-and-Term Refinance

A rate-and-term refinance replaces an existing mortgage primarily to change the interest rate, repayment term, or loan structure without providing substantial cash proceeds to the borrower. Appraisal, credit, income, equity, and net-tangible-benefit requirements depend on the transaction.

FHA Simple Refinance

An FHA Simple Refinance is designed for an existing FHA-insured mortgage and generally requires credit qualification and a new appraisal. It may replace the current FHA loan with another eligible fixed-rate or adjustable-rate FHA mortgage.

FHA Streamline Refinance

An FHA Streamline Refinance is available only for an existing FHA-insured mortgage. It may use reduced documentation compared with a standard refinance, but the borrower must satisfy payment-history, seasoning, net-tangible-benefit, and lender requirements.

An FHA streamline is not a standard cash-out transaction. Closing costs and prepaid items must be handled according to current FHA rules.

FHA Cash-Out Refinance

An FHA cash-out refinance may allow an eligible owner-occupant to replace the existing mortgage and receive a portion of available equity in cash. Ownership, occupancy, payment history, appraisal, credit, income, and maximum loan-to-value requirements apply.

FHA 203(k) Limited Renovation Loan

The Limited 203(k) combines an FHA purchase or eligible refinance with financing for approved repairs and improvements. It is generally used for smaller projects that do not involve major structural work.

Potential uses may include eligible flooring, roofing, painting, appliances, heating and cooling, plumbing, electrical, accessibility, or energy improvements.
Contractor bids, work descriptions, permits, inspections, draw procedures, and completion deadlines may apply.

FHA 203(k) Standard Renovation Loan

The Standard 203(k) is designed for larger rehabilitation projects and may include eligible structural work. The lender normally reviews the as-completed property value, rehabilitation budget, contractor, plans, permits, contingency reserve, and draw schedule.

A HUD-approved 203(k) consultant may be required. The borrower should not begin work before the lender authorizes the project.

FHA Construction-to-Permanent Loan

An FHA construction-to-permanent mortgage may finance eligible land acquisition, construction, and permanent owner-occupied financing. Participating lenders may offer a one-time-close structure in which the construction and permanent phases are completed under one closing.

Builder approval, plans, specifications, budget, permits, inspections, draws, reserves, and as-completed value are reviewed.
The borrower must qualify for the permanent mortgage and satisfy current FHA construction requirements.

FHA Manufactured Home Loan - Title II

FHA Title II financing may be available for an eligible manufactured home that is treated as real property and meets foundation, installation, title, appraisal, age, construction, site, and property standards. Financing may include an eligible home and land, depending on the transaction.

FHA Title I Manufactured Home or Property Improvement Loan

FHA Title I insurance supports certain manufactured-home and property-improvement loans through participating lenders. A Title I loan has different collateral, property, and lender requirements than a standard FHA Title II mortgage.

Title I availability is limited and must be confirmed with a participating lender before advertising a specific structure or maximum amount.

FHA Condominium Loan

FHA financing may be used for an eligible condominium unit when the project or unit satisfies the applicable FHA condominium approval, insurance, occupancy, financial, legal, and property standards.

FHA Energy Efficient Mortgage

An FHA Energy Efficient Mortgage may allow qualifying energy-saving improvements to be included in an eligible purchase or refinance. The lender reviews the energy assessment, proposed improvements, cost-effectiveness, property eligibility, and FHA limits.

FHA Section 203(h) Disaster-Victim Mortgage

Section 203(h) provides special FHA financing for an eligible principal residence after the borrower's prior home was destroyed or severely damaged in a Presidentially Declared Major Disaster Area. Location, timing, documentation, occupancy, and borrower eligibility requirements apply.

Who This Program May Fit

A buyer seeking flexible owner-occupied purchase financing.
A borrower comparing FHA with low-down-payment conventional options.
A homeowner with an existing FHA loan considering a streamline or simple refinance.
A homeowner seeking eligible cash-out financing.
A buyer or owner combining a mortgage with approved renovation work.
A borrower constructing an eligible primary residence through a participating FHA construction lender.
A buyer of an eligible manufactured home or condominium.

What Borrowers Should Prepare

Government-issued identification and Social Security number or other acceptable taxpayer identification documentation.
Recent income documentation, employment history, tax returns when required, and information about any business ownership.
Bank, retirement, gift, and other asset documentation needed for funds to close and reserves.
A complete list of debts, housing obligations, and owned real estate.
Purchase contract, homeowner insurance information, and property documents when available.
For renovation or construction: plans, specifications, contractor information, bids, permits, budget, and project timeline.

How the Mortgage Process Works

1
Initial consultation: We discuss the borrower's goals, property, occupancy, timing, available funds, income, assets, credit profile, and existing mortgage obligations.
2
Program comparison: We identify potentially eligible loan structures and compare the major differences in payment, cash required, mortgage insurance, rate structure, closing costs, and long-term strategy.
3
Application and documents: The borrower completes a mortgage application and provides documents required for the selected program and lender.
4
Processing and underwriting: The lender reviews credit, income, assets, liabilities, property, title, insurance, appraisal, and program compliance.
5
Closing: After final approval and satisfaction of all conditions, the borrower reviews the closing documents and completes the transaction.

Important Considerations

FHA mortgage insurance affects the upfront and monthly cost of the loan.
The property must meet FHA appraisal and minimum property requirements; an appraisal is not a substitute for a home inspection.
FHA financing generally requires primary-residence occupancy within the required period.
An ARM payment can increase after the initial fixed period.
A temporary buydown steps up to the full note-rate payment according to its schedule.
Renovation and construction loans involve additional documentation, inspections, draws, and completion requirements.

Frequently Asked Questions

Is FHA only for a first-time homebuyer?

No. FHA may be used by an eligible first-time or repeat buyer. The borrower generally must occupy the property as a primary residence and satisfy all program and lender requirements.

Can FHA finance a two- to four-unit property?

Potentially. An eligible one- to four-unit property may qualify when the borrower meets FHA occupancy, income, property, appraisal, reserve, and underwriting rules. Additional self-sufficiency or reserve requirements may apply to certain properties.

Can I remove FHA mortgage insurance later?

The duration of FHA mortgage insurance depends on the loan terms, original loan-to-value relationship, endorsement date, and current FHA rules. Some homeowners later compare refinancing into another program, but refinancing has costs and requires new qualification.

Does FHA allow a 2-1 buydown?

A temporary buydown may be permitted on an eligible fixed-rate FHA purchase when it is funded and documented by an allowed party and the borrower qualifies according to current FHA and lender requirements.

What is the difference between FHA 203(k) Limited and Standard?

Limited 203(k) is generally intended for smaller, nonstructural projects. Standard 203(k) is designed for more extensive rehabilitation and may include structural work, additional professional oversight, and a more detailed draw process.

Does viewing this page mean I am approved?

No. Website information is not an approval, preapproval, commitment to lend, or guarantee of terms. A lender must review a completed application and all required documentation.

Are all of these options available in every state?

No. Availability depends on Northgate Mortgage licensing, participating-lender guidelines, property location, loan purpose, occupancy, and current investor requirements.

What determines my rate and closing costs?

Pricing may depend on market conditions, loan program, credit profile, loan amount, property type, occupancy, loan-to-value ratio, documentation method, lock period, points, lender credits, and other transaction details.

What is the first step?

Speak with a Northgate Mortgage loan specialist to review the goal and complete an application when ready. Qualification depends on the complete borrower, property, transaction, and lender review.

Explore Your FHA Mortgage Options

Northgate Mortgage can help you compare FHA purchase, refinance, ARM, temporary buydown, renovation, construction, manufactured-home, and specialty programs.

Call (888) 433-1448 Email Us Get Pre-Approved

Northgate Mortgage LLC is a mortgage broker and is not making a commitment to lend. All loan programs are subject to borrower and property eligibility, credit review, income and asset verification, appraisal, title review, underwriting approval, investor requirements, occupancy requirements, geographic restrictions, and applicable state licensing. Program availability, guidelines, rates, annual percentage rates, fees, loan limits, and terms may change without notice. Not all applicants will qualify, and not all programs are available in every state. This information is for educational and advertising purposes only and is not legal, tax, investment, or financial-planning advice. Equal Housing Opportunity.

FHA programs are insured by the Federal Housing Administration. Northgate Mortgage LLC is not acting on behalf of, or at the direction of, HUD or any other government agency.

FHA adjustable-rate mortgage rates and payments may increase after the initial fixed period. Temporary buydown funds reduce the required payment only for the stated period and do not change the mortgage note rate.

Northgate Mortgage LLC | NMLS #2791086 | (888) 433-1448 | support@northgatemtg.com | northgatemtg.com