Do You Qualify for an FHA Home Loan?
If you would like to buy a house, but you don’t have a perfect credit rating or you have a limited amount of funds for a down payment, an FHA loan might just be the right choice for you.
What is an FHA home loan?
FHA home loans are mortgages backed by the Federal Housing Administration. These loans are available from a variety of private lenders. Similar to the private mortgage insurance with conventional loans, FHA borrowers are required to pay a mortgage insurance premium, which helps to protect the lender should the borrower default. There is an upfront portion of the MIP that is financed into the loan amount and a smaller amount that is added to your monthly payment.
Benefits of an FHA home loan
One of the primary advantages of an FHA loan is that such loans are government-backed and thus have relaxed criteria for qualifying. Many potential homeowners, particularly first-time buyers without a lengthy credit history, can get an FHA loan even when they have been turned down for a traditional bank loan.
FHA loans are often available at interest rates lower than those of traditional home loans. Down payment requirements are as low as 3.5 percent, less than the 5% percent required on conventional loans. There is more flexibility with FHA loans for the seller to contribute toward the buyer’s closing costs (up to 6% of the loan amount) as well.
How We Can Help
To learn more about FHA loans and whether this type of loan is right for you and your family, contact Butler Mortgage . Our professionals have been helping Central Florida families like yours to get the financing they need for more than 20 years. For questions, or to speak with one of our representatives, call us today at 407-931-3800.