Why Consider an FHA Loan?

There are many reasons for homebuyers to investigate an FHA home purchase. First time homebuyers should explore FHA loan options because it’s easier to qualify for an FHA home mortgage. Your loan is guaranteed by the government, making your application more attractive to lenders. An FHA home mortgage often costs less and is more forgiving of indiscretions with credit and payments.

FHA home loans don’t require a big down payment at closing time. For first-time homebuyers this can be a real plus. The FHA mortgage requires a low 3.5% down payment, and that money can come from a variety of sources including HUD down payment assistance grants.

For first time buyers, closing costs are another issue that can be a financial drain; typical closing costs for FHA home loans are around 2% or 3% of the total mortgage. One advantage when taking out an FHA loan? FHA mortgage terms may allow you to build in closing costs into your mortgage.

By serving as an umbrella under which lenders have the confidence to extend loans to those who may not meet conventional loan requirements, FHA's mortgage insurance allows individuals to qualify who may have been previously denied for a home loan by conventional underwriting guidelines.

Resources:
FHA Loan Limits for New York State
FHA Mortgage Calculator
FHA Guidelines
Down Payment Grants

Every situation is unique; contact a lender to discuss your options.