Buying your first home?
FHA, or Federal Housing Administration home loans are a great option for first-time home buyers. These loans are insured by the Federal Housing Administration (FHA). The federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower is unable to make their home mortgage payments. FHA home loans are one of the better options for borrowers with credit scores under 700. Usually, borrowers can be approved with a 3% down payment instead of a 20% down payment that may be required on other home loan programs.
As of 2018, these loans allow the borrower to borrow up to 96.5% of the value of the home (with a credit score of at least 580). One advantage of an FHA loan is that the 3.5% down payment requirement can come from a gift or a grant. Another advantage is that the seller of the home can contribute to up to 6% towards closing costs. FHA loans require the home buyer to have government funded mortgage insurance. The mortgage insurance is typically an added cost to your monthly mortgage payment.
Ready to begin? Apply now or contact us today at 865-392-5450 to find out if an FHA home loan is the best option for you!