An FHA loan is a great option to consider for first-time homebuyers! An FHA loan can offer down payments as low as 3.5% for applicants with good credit. The program also allows for a majority of fees and closing costs to be covered by your loan.

An FHA loan can help you make your home more energy efficient. If saving money through reduced energy costs and having an eco-friendly home is important to you, then you’ll be able to include energy improvement costs in your loan application. An FHA loan can cover any home, which includes mobile homes and manufactured housing units.

WHAT CAN AN FHA LOAN OFFER ME?

An FHA loan is a mortgage or home loan that can assist buyers when purchasing a new home when they might not be able to otherwise. This type of mortgage is insured by the Federal Government and will protect the lender from any losses that may occur if the home goes into foreclosure. The FHA program is more lenient when compared with conventional loans because they don’t require a minimum credit score to qualify. Most borrowers are allowed a down payment of as low as 3.5% of the home’s purchasing price.

For borrowers with a lower credit score, getting assistance when trying to buy a new home is understandably difficult. When using an FHA loan, you won’t be immediately disqualified for having a lower credit score. Buyers with a lower credit score can often still get approval by demonstrating their ability to pay back the loan by making a slightly higher down payment.

Underwriters will usually review credit and financial history from the last 1 to 2 years prior to signing. If the records are acceptable, then customers often get approved even if they have previously struggled to get conventional financing approval in the past.

With an FHA mortgage, homebuyers must make a down payment of at least 3.5% of the final sales price. Total costs for an FHA loan approval are generally between 6 and 8% of the sales price after covering down payment, closing costs, taxes, insurance, along with interest rates.

The money required to cover the costs for a down payment and other rates may be covered using your personal savings, grants, loans, retirement funds, or even gifts from a family member. FHA loan applicants must have a steady employment history, along with a valid Social Security number. The property must be assessed and approved by an appraiser to be able to qualify for FHA.

To learn more about an FHA Loan, contact USAFC Realty.

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