If you are a first-time home buyer, FHA loan programs are a great choice for you offering:
- Great pricing, lower down payment
- Less stringent underwriting process
- Minimal down payment
- Reasonable interest rates
The Federal Housing Administration, a component of the US Department of Housing and Urban Development) designed FHA-Insured Loans with security and perks that cannot be found with other types of mortgage loans. Specifically built to help first-time homebuyers and buyers who may have a blip on their credit report or don't have a large down payment get a loan, FHA loans provide borrowers with flexibility and adaptable qualification guidelines.
Most common FHA Insured 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 have the cost of rehab wrapped up into the home loan, or those looking to refinance their current mortgage and add remodel and repair costs.
- FHA Energy-Efficient Mortgages for those looking to update their home to be energy efficient; for example, adding solar panels or improved insulation.
Additional perks of a FHA mortgage:
- 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
FHA-Insured Loans are especially beneficial for the following home buyers:
- First-time home buyers
- Homebuyers with limited money to put down
- Home buyers that may have credit issues
- Homebuyers wanting low monthly payments
- Homebuyers interested in refinancing a costly home loan
- Homebuyer seeking to finance one- to four-unit structures or approved condominiums.