Ideal for first time home buyers, an FHA loan provides borrowers with flexibility when starting out with a new mortgage. With a less stringent approach to the underwriting process, along with reasonable interest rates and a minimal down payment, mortgage seekers can appreciate the home buying process without needless stress.
Types Of Loans
- FHA 203(b) Home Mortgage Loans for qualified buyers looking to buy or refinance a primary residence.
- FHA 203(k) Renovation Loans for those seeking to buy a home that needs a bit of repair and has the cost of rehab wrapped up into the home loan, or those looking to refinance their current mortgage and want to bundle the remodel and repair costs into the loan.
- FHA Energy-Efficient Mortgages for those looking to update their home to be energy efficient; for example, adding energy efficient appliances or improved insulation.
FHA Benefits
- Low down payments (as low as 3.5% of the cost of the home)
- Fixed-rate and adjustable-rate mortgages offered
- 100% of down payment and closing costs can be acquired via gift funds
- No prepayment penalty
- The qualification requirements are very flexible
Who Qualifies for an FHA Loan?
- First-time homebuyers
- Buyers who don’t have a large down payment
- People who may have credit issues
- Buyers who desire long term low monthly payments
- People interested in refinancing their home loan
- Buyers who seek to finance one to four unit structures or approved condominiums
