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Guidelines for Securing FHA Loan
There are many types of real estate financing options available to you. It seems that there are new ones coming out all the time. Despite credit challenges, you now have many more FHA loan options to qualify for financing for a new home.
Before you make your mind up on which FHA loan to take, do the research. Find out the advantages and disadvantages of each type of FHA loan for your financial situation. Find the home loan that best suits your situation and needs. Family or business, short term or long, talk to a trusted home mortgage, bank lender and your real estate agent to get their expert opinions.
FHA Loan Section 203b
FHA stands for Federal Housing Administration. This is slightly different from a typical home loan. In fact, they don’t give the actual financing to the home buyers. The FHA insures the home mortgage. In many cases, this government backing will help home buyers get financing from another bank or home mortgage company.
By using FHA loan options many times, it takes thousands off the cost of the home loan. The savings come from the interest with the FHA the home buyers will qualify for a lower interest rate.
The FHA loan is aimed at the lower to mid-income families. Most lower to mid-income families don’t have the resources to come up with the large down payment. Typically the down payment on a home was about 10%. That is why it was a requirement that kept many from buying a home in the past. The FHA loan is an excellent way to help those families whose income is in the low to mid range as they may be able to buy a home for as little as 3% down. If you break down the figures on a $100,000 home you could be looking at $3000 instead of $10,000 for a down payment. That $7000 savings alone could be just the savings home buyers need to get their financing for a new home.
An FHA loan allow another financing option for those families to have the same joy of owning the home of their dreams as the higher income families. The FHA loan can be especially accommodating if the home buyers requirements would have fell just short in underwriting.
FHA Home Loan Primary Residence
One of the required stipulations of an FHA loan is that to qualify the home buyer must to use it as their primary residence. Typically for many this requirement will not be a problem. If you are looking to purchase a vacation home, rental or any other type of investment property, keep looking for other home loan financing options.
On the downside, with an FHA loan there are limits set for the amount of financing. On the upside of an FHA loan, the loan origination fees also are limited. These caps on how much the mortgage loan limits are set to keep the home loan serving the mid to low income families. If you need a home loan that would fall in higher price range than the home loan cap on an FHA loan, you should keep looking for another home financing alternative that will better suit your real estate needs.
Call Your Agent for FHA Guidelines, Limits, Requirement, and Services
Still think an FHA loan will work for you and your family? Start by looking for a lender that does home loan financing and then one of the many lenders that are FHA approved. If you are unsure where to find an FHA approved home mortgage lender, talk to your real estate agent.
Financing a home with an FHA loan can seem overwhelming at first. Pick a real estate agent that cares about your need and has your family’s best interests at heart. Your real estate agent can help point you in the right direction to home buying and home loan resources. Put their home buying resources to work today.
Call us, 509.438.9344, Email us, or fill out the contact form below.
We respond right away! -Colleen Lane, Realtor®
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