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Purchasing your first home can be a daunting task for many first time homebuyers. Many individuals do not have the best credit and finding a home loan that wont kill your paycheck can be a hard task. Others are concerned about the up front costs that come with purchasing a home including money down, closing costs, taxes, etc.

FHA is a solution to many of these questions and doubts.

Today’s FHA terms are pretty straightforward. In fact, in many markets the rates and terms are better than those for conventional 80% / 20% down payment loans.

There is little or no adjustment to the interest rate for an FHA loan, as the rates vary within .125 percent of a conventional loan. (like stated earlier right now are lower due to market conditions)

Normal subprime lenders have employed much higher interest rates in order to compensate for the increased risk of the loan. Because FHA loans are guaranteed, there is substantially less risk for the lender and therefore interest rates are lower

Mortgage insurance is funded into the loan, meaning a premium of 1.5% is added to the loan balance instead of being paid out-of-pocket. In addition, a small portion for the mortgage insurance premium is added to the monthly payment, but it is far less than private mortgage insurance premiums.
Borrowers can finance 97% of the purchase price and put down 3 percent. In some instances, when using the down payment assistance programs that supplement FHA, the down payment can be zero.
Allowable debt ratios are higher than the debt-ratio limits imposed for conventional loans.

Stop renting today and purchase your first new home. Why pay for someone else to build equity when you can jump on lower FHA loan rates and build your own wealth? Don’t be intimidated by the thoughts of upfront costs and take that first step to purchasing your first home. It may not be a brand new house but it’s always nice to have a roof over your head that you can say belongs to you.

I am going to be posting a series of articles to fully let you, the consumer/client, know everything there is to know about going with an FHA insured loan.

Most of you know about the “mortgage meltdown” with alot of subprime lenders going under, now FHA loans are making a strong comeback as a useful alternative for first-time home buyers. FHA is also great for home buyers with less than perfect credit. If you are a first-time home buyer or have bought a home before and have less than perfect credit you have come to the right place. We consider ourselves FHA specialists and many colleagues have told us we were way ahead of the curve when it came to the mortgage, while everyone else was scrambling to just become licensed in FHA loans. NOW to find out if this is a good option for you all you have to do is answer a few questions.

Because it’s an FHA loan, lenders will offer you lower, more affordable rates. This is possible because the FHA insures lenders, so they have less risk by taking you on as a borrower.

Want to learn more? Check back every couple of days, we’ll eventually post up the full guide. And if you’re in the mortgage industry, contact us for the Informative powerpoint for mortgage professionals.

As always, for a personalized analysis, connect with one of our specialists online
Or give us a call 908-625-4982