An FHA insured loan is a great alternative to Conventional financing.
FHA insured loans (also called a ”Government Loan”) are a type of federal assistance and have historically allowed lower to middle income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford. To obtain mortgage insurance from the Federal Housing Administration, a mortgage insurance premium (MIP) equal to a percentage of the loan amount at closing is required, and is normally financed by the lender and paid to FHA on the borrower’s behalf.
FHA loans are great for First Time Homebuyers, those who have little money down to purchase a new home, and individuals who have had some credit problems in the past.
FHA loans are available to most customers and are designed to meet certain customer’s needs. FHA loans are most prevalent among 1st time homebuyers. This is due to the fact that the FHA has very low down payments requirements (as low as 3.5%*) and available seller assist programs (up to 6% of purchase price*). These flexible factors, coupled with more relaxed credit score requirements (as low as 640) make FHA loans incredibly popular. This achieves the FHA’s goal of providing more people the ability to affordably purchase homes. The flexible credit criteria also allows customers with average credit to obtain more affordable rates for refinancing.
Call us today to discuss if FHA financing is a good option for you.
