There absolutely are costs associated with an FHA loan. There is the minimum down payment of 3.5% and closing costs as well. However, there are multiple ways to reduce this cost down to zero if you follow the various options and steps.
The Federal Housing Administration has provided multiple avenues for borrowers to get help from others to finance their homes. The trick is to know what these avenues are and to take advantage of them.
There are three basic tools to accomplish this:
- Gift Funds
- Seller Contributions
- Lender Credit
There are many FHA Lenders in your area who can help you with this method of getting an FHA loan without using any of your own money.
Follow the link below to read more about how to use these three effectively to work together. How to convince sellers to help is also an art that needs to be learned.