FHA Mortgage Information
Owning a home is a dream that many Americans hope to achieve some day, but it can be hard to do without some financial assistance. FHA home loans are preferred for first time home buyers but are also available for individuals who have previously purchased homes if the circumstances fit.
The FHA loan is federally insured, which permits the lender to offer loans to more borrowers without placing themselves at such a high risk. Lenders are more willing to give the loans to buyers who qualify for the FHA loans since the federal government insures the full amount.
To qualify for the FHA loan you need to make the purchase for your primary residence. Each lender enforces different requirements for a minimum credit score for you to qualify for the loan amount, but the baseline is a minimum score of 600. If your score falls slightly below the minimum it may be possible to get the loan with a few modifications.
One of the primary difficulties that you may face when attempting to get FHA mortgage loans is how much money you need to make as a down payment. FHA home loans have very low requirements and enable you to purchase a home for as little as 3.5% of the purchase price. You may also qualify for assistance with financing for the down payment. You can also utilize gifts from friends, family members or employers to help with the down payment.
Loan limits for the FHA loans depend on where in the country you are looking to purchase the home. Areas that have higher costs of living have higher loan limits than those in relatively low-cost areas. The entire process of qualifying for the FHA loan, selecting a home to purchase with the funds and getting in the home can be confusing, but taking each step one at a time makes the process go much smoother.
Working with professionals who are skilled in helping potential home buyers obtain FHA mortgages will streamline the process so you can get from the beginning to end with as little hassle as possible on your journey to owning a home.