Are you dreaming of owning a home, but feeling overwhelmed by the whole mortgage process? Worried you can’t afford the property you really want because you haven’t saved enough? Today we’re going to help you learn all about FHA loans and how this mortgage program can make your home ownership goals a reality! As the #1 FHA Lender in America for the second year in a row (according to the Scotsman Guide) we’re well-versed in all the ins and outs of this versatile loan product.
What is an FHA Loan?
FHA loans are a popular choice for first-time buyers who might not have a huge down payment saved up. With lower credit score requirements and a down payment option as low as 3.5% of the purchase price, FHA loans make it easier for more people to qualify. They’re also backed by the Federal Housing Administration, which means a smoother path to getting those keys in your hand.
Why Should I Choose an FHA Loan Over a Conventional Loan?
At the Potempa Team, we believe knowledge is power and that you should explore as many loan options as possible so you can make an informed decision. Some first-time buyers choose the conventional loan path to make their offer more competitive in a crowded market. That said, many first-time home buyers do still choose an FHA loan over a conventional loan because of that low down payment option. For a conventional loan, you’d need to put 20% down whereas with an FHA loan, just 3.5% is needed in many cases.
Is There a Limit to What I Can Buy with an FHA Loan?
Yes! The FHA loan does come with some requirements and rules attached. The property you want to purchase must be FHA-approved. Not sure if it is or not? Be sure to ask your real estate agent to investigate.
In addition to being FHA-approved, the property you buy must be your primary residence and you need to move in within 60 days of closing. FHA loans also require a home inspection, and the property needs to meet minimum habitable standard which vary from state to state. Finally, there are loan limits for an FHA loan. That means you can’t go over a certain purchase price. Be sure to talk to your real estate agent about what the limit is in your area or check out the latest update from HUD here.
What Are the Next Steps to Qualifying for an FHA Loan?
Qualifying for an FHA loan is easy and straightforward. You’ll want to talk with one of our lenders at the Potempa Team so they can get an accurate picture of your situation and walk you through all the steps to get qualified to buy your first home. Click here to start the pre-qualification process now.
FHA loans are a fantastic option for making your homeownership dreams come true. They offer flexibility, lower down payment requirements, and a generally easier path to getting those keys in your hand. If you’re ready to take the plunge, we’re here to help guide you through every step of the process. So why wait? Work with the #1 FHA lender in America and start your journey to owning a home today!
