Just the Facts ma'am, Just the Facts: FHA Loans
I am by no means trying to indicate that I am an expert on home loans and I do not want to step in any of the really great mortgage folks toes but I attended a class on FHA loans yesterday and did learn some new and interesting things and was reminded of some things I had forgotten.
Sooooo I thought I would write up some down and dirty facts that were brought up during my class. This post is meant to be informative and a nice starting place for homeowners! I hope the information is helpful, for a more extensive explanation and official pre-qualification please contact a lender in your area or a local Realtor who should be able to direct you to a qualified lender!
photo courtesy of: http://www.flickr.com/photos/thetruthabout/2809626213/
- Before you decide to consider an FHA loan, you must know that FHA loans have limits. The limits do vary between different markets, here in the San Antonio area, the limit is $332,500.00. So if you are looking to purchase a house above that price, you are out of luck (with an FHA loan - there are many other types of loans for buyers looking to surpass the FHA limit).
- FHA offers home buyers standard 15 year and 30 year fixed rate mortgages and with rates as low as they are right now, this is a very good thing!
- FHA only requires a down payment of 3.5% of the purchase price of the home.
- FHA will allow the sellers to contribute up to 6% of purchase price for buyers closing costs.
- In order to qualify for an FHA loan, the home buyers must be purchasing a property they will occupy and it can be a single family, a condo or a manufactured home.
- The minimum credit score allowed for FHA is 600, but FHA does allow for the use of a non-occupant co-borrower. This is perfect for the young home buyer who may not have had time to establish credit and might have parents willing to help him or her out by co-signing.
- All FHA loans are fully assumable - this can be a great selling point if you ever decide to sell your home during a time when interest rates may have risen.
Well, there ya have it. This list again, is by no means a full description of what an FHA loan program has to offer but hopefully it is enough to get you, the home buyer started!
I hope every one has a great weekend!
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