FHA stands for the Federal Housing Administration.
Are you a first-time homebuyer in North Carolina looking for an affordable mortgage option? Home Lending Pros can help you explore FHA loans – the most popular loan program for first-time homebuyers.
FHA loans are insured by the Federal Housing Administration and are designed to help borrowers with lower credit scores and limited funds for down payments qualify for mortgages. If you are ready to start your journey to becoming a homeowner, contact Home Lending Pros today. We will work with you to get you the FHA loan you need to purchase your dream home.
What Is an FHA Loan
An FHA loan is a home loan insured by the Federal Housing Administration (FHA). It enables borrowers to purchase a home with as little as 3.5% down payment. It is popular among first time homebuyers because of its low down payment and credit score requirements. FHA loans are a great option for borrowers who cannot afford a large down payment or have a lower credit score.
With an FHA loan, borrowers can enjoy competitive interest rates, low closing costs, and flexible guidelines. Borrowers can also take advantage of an FHA loan's low down payment requirement. In addition, FHA loans do not require a perfect credit score, so even those with a past bankruptcy or foreclosure can apply.
BENEFITS OF FHA LOANS
Low Down Payment:
FHA loans require a minimum down payment of just 3.5%, making them a great option for those who don’t have a lot of cash on hand.
Flexible Credit Requirements:
FHA loans are easier to qualify for than traditional mortgages, making them a great option for first-time homebuyers who don’t have perfect credit.
Competitive Interest Rates:
FHA loans typically offer lower interest rates than traditional mortgages, making them more affordable in the long run.
Low Closing Costs:
FHA loans have low closing costs compared to traditional mortgages, which means more money in your pocket at the end of the process.
Protections for Homebuyers:
FHA loans offer protections for homebuyers, such as allowing the seller to pay some of the closing costs and requiring an appraisal to be done before closing.
COMMON TYPES OF FHA LOANS:
Fixed Rate Loans: Fixed-rate FHA loans are a great way to lock in a low-interest rate for the life of your loan. With a fixed-rate loan, your payments will stay the same each month, making budgeting and planning easy.
Adjustable Rate Mortgage: An adjustable rate mortgage (ARM) allows you to have a lower initial interest rate, but your rate can change over time. ARMs usually have a fixed period of time where the rate will stay the same, followed by a period of time where the rate can change.
FHA 203k Loans: With an FHA 203k loan, you can roll the cost of home improvements into your loan, enabling you to borrow enough to cover the cost of the improvements.
FHA Jumbo Loan: Jumbo loans are mortgages larger than the Federal Housing Finance Agency’s (FHFA) conforming limit. With an FHA jumbo loan, you can borrow more money to cover a larger purchase.
There are specific types of FHA loans that your lender can go over with you if you decide an FHA loan is right for you. While deciding what type of FHA loan works for you, it’s also important to note certain limits on FHA loan, namely how high of price they are willing to cover.
WHY CHOOSE US?
At Home Lending Pros, we understand that each borrower's situation is unique. We offer a wide range of FHA loan options, designed to meet the needs of our North Carolina customers. Our experienced loan officers are here to answer any questions you may have about FHA loan requirements, and help you find the loan that best meets your needs. Contact our team today to learn more!