If you’re dreaming about owning a new home, you may have questions about your purchasing power and ability to qualify for a mortgage. From credit scores to down payments, it’s common to be unsure about how much is required. (Hint: it’s lower than you may think!)
One option to consider is an FHA loan, but it’s important to have all the facts. This new article from Mint.com explains FHA loans, the benefits, and potential disadvantages. An FHA loan isn’t the only option available, but it’s one you may consider based on your personal situations and needs. Of course, you’ll want to do your own research and speak with qualified professionals before making any decisions about your mortgage options.
Purchasing your first home is one of the most important financial decisions of your life. If you’re currently renting in an expensive housing market, the one thing standing in your way is likely the down payment – easily a six-figure lump sum at the traditional 20%.
But what if you could lower the required down payment percentage to as low as 3.5%? Sounds appealing, right? It’s possible with a Federal Housing Administration (FHA) loan, but you should understand all the facts before signing on the dotted line.
The FHA loan has been around since 1934, when the U.S. government launched the program to jumpstart a lagging housing market. Since its inception, FHA has insured more than 34 million home mortgages, with 4.8 million single-family mortgages in its portfolio today. FHA loans aim to make home ownership more accessible to all Americans by offering down payments as low as 3.5% and low interest rates for borrowers with low credit scores.
{Continue reading: Is an FHA loan right for you? }
Whether you’re dreaming of your first home or next home, Lennar’s preferred lender, Universal American Mortgage can help. Contact them to learn more about your financing options or for help overcoming past credit problems. Their experienced team can walk you through every step of the process to get you into the home of your dreams.
