FHA loans are mortgages issued by federally qualified lenders and insured by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development.
FHA loans are an attractive, maximum financing option, especially for first-time homeowners.
Raleigh Mortgage Group works with a number of FHA lenders. Some of the advantages of an FHA loan are:
- Generally easier to qualify for than Conventional loans
- Only 3.5% down payment (The 3.5% can be gifted from a family member)
- Allows for higher debt ratios in most cases
- Typically a 580 credit score is needed for the this program
- Maximum loan size varies by county (call for details)
- No income limits
- Co-Signers are acceptable to help with credit, debt ratio and down payment
- Co-signers do not have to occupy the property
- Available on all property types (Condos need FHA approval)
- Can be used to purchase duplex, triplex and quad properties where you can rent the other units (only 3.5% down)
- The loan is assumable when it comes time to sell
- If the home doesn’t appraise then you are able to receive your earnest money back
- Interest rates are typically lower than a conventional loan
- Shortest waiting period after having a prior Bankruptcy, Foreclosure or Short Sale
- If purchasing an FHA Foreclosed home, you can get by with only $100 down
- Loan offers a low documentation streamline refinance option if rates improve
For more information, please call Raleigh’s Local Loan Experts at 919-866-0212 to answer any questions you may have!