FHA Purchases: WHAT YOU SHOULD KNOW

Minimum FHA Down Payment Incentives

The Federal Housing Agency backs loans to potential buyers who cannot obtain conventional loans due to low credit scores or limited credit. Primarily aimed at people who are first-time buyers, this type of loan is also available to others with similar circumstances.

Coming up with a down payment for a loan can seem an insurmountable obstacle to your dream of owning your own home. FHA loans require much lower down payments than conventional loans, as low as 3.5% of the market value of a property! This may be your answer to home ownership!

Should I get an FHA Home Loan?

Is an FHA loan your answer to your long-dreamed-of home?

If your capital is small and credit issues have plagued you, FHA will allow you to use monetary gifts, in addition to what you can contribute, as a downpayment. Some states also offer down payment assistance.

Be aware that with an FHA loan, monthly insurance fees of 0.85% are added to your costs; this sometimes makes them costlier than conventional financing. However, if you have an excellent credit score in the 700-800 range, you may want to compare the benefits of conventioanl financing to an FHA loan.

It is good to know that there are options!

FHA Max Loan Amount & Qualification Requirements

There are limits to the amount of money that can be loaned through FHA, varying from state to state and locality to locality. Maximum home loans in high-cost living developments are approximately $362,250.

There are certain requirements that must be met in order to secure a loan. A downpayment of at least 3.5% must be provided. A credit score of at least 580 on the FICO (Fair Isaac Corporation) credit rating scale is also necessary, although with a credit score as low as 500 and a higher downpayment of 10%, the loan may still be secured.