For several years, it looked like FHA loans had gone the way of the dinosaur. Instead, zero down payment programs became the extinct species and FHA loans are again a great option for many homebuyers. In fact, according to a recent article by RIS Media, almost half of the buyers for new construction in the Southeast this year purchased with an FHA loan.
However, many buyers we see are unfamiliar with FHA loans. So, what is an FHA loan and how can it help you? FHA loans are insured by the Federal Housing Authority, a goverment agency. As a result, your lender requires a lower down payment and easier credit guidelines. Most FHA loans in GA require a down payment of 3.5% and a credit score as low as 620 with some lenders. And in most of metro Atlanta, the loan amount can be as high as $346,250.
So, don't be overwhelmed by the thought of saving up for a 20% down payment- take advantage of the great homebuyer market that we're in!