The Federal Housing Administration (FHA) will guarantee a portion of your mortgage if you use it to purchase a property. Millions of loans have been guaranteed by the Federal Housing Administration (FHA) under HUD since its inception in 1934. The FHA is the most popular mortgage program since it insures lenders against loss should a borrower default on their loan.
FHA loans are popular among borrowers and first-time buyers who have the following requirements:
- Simple eligibility requirements and credit policies
- Decreased Final Expenses
- Options requiring little or no upfront cash
- Features of the FHA
- The minimum down payment for a single-family home or condominium is 3.5 percent.
- Whether on private land or in a mobile home park, you can use an FHA loan to buy a manufactured home.
- The Operation of FHA Mortgage Insurance
- Remember that the FHA is not a lending institution but rather a mortgage insurance.
A mortgage insurance fee equal to 1.75 percent of the loan amount is due up front. Your loan can include the cost of the initial premium payment.
Along with your regular monthly mortgage payment, you will also be required to pay a mortgage insurance fee. The down payment and loan term both affect the final sum. Get a price for your monthly mortgage premium payments and more information by contacting a loan adviser at SteveKnowsLoan.
Pros of Getting an FHA Loan
Less Strict Credit Requirements. You can get approved for an FHA loan with a credit score as low as 500.
Refundable Initial Deposit With a credit score as low as 580, the minimum required down payment is 3.5% of the buying price. A credit score of 500 or below will only necessitate a 10% down payment.
Final Expenses. The FHA permits the seller or builder to cover some of the buyer’s closing costs, such as those associated with the buyer’s credit report, property appraisal, and title services.
Don’t forget to factor in the price of maintenance and improvements. The FHA 203k Rehabilitation Loan is a second mortgage that can be used for both major and minor home renovations. If you want to finance the expense of making energy efficiency upgrades to your home, consider applying for an FHA Energy-Efficient Mortgage.
Rates and Terms are Negotiable. Both fixed- and adjustable-rate mortgages are eligible for the FHA’s low interest rates. Popular terms include 30 years fixed and 5/1 adjustable. Consult an FHA loan expert to determine the best repayment plan for you.
SteveKnowsLoan is able to provide borrowers with a wide range of FHA loan alternatives because of its extensive network of licensed FHA lenders. Simply give us a call or submit an online quotation request for a free, no-obligation consultation. One of our FHA loan experts will look into all the different FHA programs to find one that works with your budget.
If you are interested in a FHA Purchase, don’t hesitate to contact us right away.
Call Steven Jackson at 813-616-9411 now!
