FHA Home Loans
FHA HOME LOANS are easier to qualify for than traditional loans and require a smaller down payment as well. Closing costs are regulated so that you aren't hit with huge fees.
As a part of an FHA loan's eased down payment requirements you may be able to pay as little as 3% down and even use money from charitable donations or family.
Because of the easier down payment requirements, FHA home loans are popular for first time home buyers, those with bad credit, or those with little money to put down. It is common for FHA borrowers to finance the maximum 97% of their mortgage.
As a part of an FHA loan is also common to paid what is called points. Each point equals 1% of the cost of the home and is paid towards reducing your interest rate.
If you are renting, an FHA loan may allow you to become a homeowner sooner than you might otherwise. As a homeowner you have the benefit of tax deductible interest payments on your mortgage as well as equity acquired over time that is otherwise handed to your landlord.
Many of our network lenders are able to offer FHA Home Loans and go through the numbers with you to tell you whether or not you qualify. To contact a lender today simply fill out our one page application and you will get as many as four free no obligation loan quotes.
Common FHA Home Loan Questions:
1. What is PMI (Private Mortgage Insurance)?
Private mortgage insurance is usually paid by homeowners who are putting down less than 20% of the selling price of their home. It it typical that homeowners with an FHA loan pay PMI until they have acquired a certain amount of equity in their home, at which point the borrow is legally no longer required to make payments.2. Can I finance my closing costs as well?
Yes, Closing costs are typically 2-3 percent of the selling price of the home and they can be financed as a part of the purchase of the home in most cases.3. What is the most I can borrow with an FHA Loan?
This depends on where you live and how many members of your family will be living in the house. Values range anywhere from $150,000 all the way on up to well over $300,000.