Don't have the 20% Down payment? FHA government loans are here to help
This New Year 2019 Brought new opportunities for first time buyers who want to take advantage of the price drop in homes but haven't got the 20% down. With FHA loans you can buy your first home with only 3.5% down. Meaning the banks are open to lending you up to 96.5% of the value of a home. To qualify you need at least a 580 credit score.
If your credit is between 500 and 579, you can still get an FHA loan if you put 10% down payment.
With FHA loans, your down payment can come from savings, a financial gift from a family member or a grant for down-payment assistance.
How FHA Loans Work
It’s important to note that the Federal Housing Administration doesn’t actually lend you money for a mortgage. Instead, you get a loan from an FHA-approved lender, like a bank, and the FHA guarantees the loan.
An FHA loan requires that you pay two types of mortgage insurance premiums – an upfront mortgage premium insurance (UFMIP) and an Annual MIP (charged monthly). You pay this at the time of closing, or it can be rolled into the loan. The payments are deposited into an escrow account set up by the U.S. Treasury Department, and the funds are used to make mortgage payments in case you default on the loan.
If your interested in getting help with applying for an FHA loan call our office today.