Getting an FHA Loan
One of the most popular forms of financing a property is an FHA loan. FHA stands for Federal Housing Administration. FHA is a government owned organization that backs loans given by financial institutions throughout the US. An FHA mortgage has become one of the most popular financing vehicles, especially with first time home buyers.
One of the more significant attractive features of an FHA mortgage is the low down payment requirement. When using an FHA loan, you only have to put down 3.5 percent of the purchase price. For many first time home buyers scraping up enough cash for a down payment can be a serious challenge. Over the last five years prices across the country have skyrocketed.
By having such low down payment requirements, an FHA loan gets more buyers into homes. The low down payment is not the only advantage to an FHA loan. Another attractive feature is lower credit score requirements than some other loan programs.
While these are positive features with an FHA mortgage, there are also some downsides although not that significant. In order to get a standard FHA loan the property will need to meet certain minimum condition standards. In other words, it can't be a dump!
If you have ever considered FHA financing or just want to learn more about this type of loan, visit the exceptionally detailed link above where you will find information from Maximum Real Estate Exposure.
The article goes to great lengths to explain everything you'll need to know about FHA financing. Take a look and if you find the information helpful, please consider sharing it. If you have any questions, feel free to reach out and ask.
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