There are many types of loans out there to help make the dream of homeownership a reality for home buyers. For those homebuyers that don't have a large sum for a downpayment, there is a great loan program that they can benefit from. One of these loan programs is FHA. A FHA loan is a loan that is insured by the Federal Housing Administration, thus giving the borrower credibilty with lenders. FHA insured loans are a type of federal assistance and have historically allowed lower income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford. Like any other loan program you must qualify for a FHA loan. Here are other things you should know about a FHA Loan:
1.- A FHA loan requires only a 3.5 percent down payment and you can get that down payment as a gift. However if your credit score is close to the minimum you might have a higher downpayment requirement.
2.-Sellers can contribute to closing costs.
3.-Be prepared when applying for an FHA Loan. You will need to have your income very well documented.
4.- FHA minimum credit score is 530
For more information on the FHA loan or to see if you qualify, give us a call and we will be happy to give you the best real estate service you can receive in the Emerald Coast.