FHA
FHA Loans (Federal Housing Administration) are government-backed loans. In the past these loans were believed to be for first time home buyers or borrowers with credit issues. These loans are actually great for everyone, whether its your first home, fifth home, good credit or less than perfect credit. Even if you’ve owned a home previously, and have perfect credit, FHA may still be the best loan option for you.
There are several advantages to an FHA loan. There is a low minimum down payment of 3.5%. The seller can contribute up to 6% of the purchase price toward the buyer’s closing costs and prepaid expenses. This can significantly reduce your out of pocket expense. Streamline refinances are available for FHA customers who have acceptable mortgage pay history for the most recent 12 months. With a streamline refinance the document requirements are greatly reduced. It’s a great option to ensure your ability to take advantage of lower rates down the road without having to re-qualify!
Find out if an FHA loan is right for you.
