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The FHA Option for First-time Buyers |
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With the excitement and anticipation that goes along with buying your first home, first-time buyers often present unique challenges when obtaining mortgage financing.
One home financing option that you may want to look into is a Federal Housing Administration, or FHA loan. Backed by the federal government, FHA loans are often an alternative for buyers who are credit impaired, or have credit issues. In addition, FHA loans are also popular with home buyers who may not have saved a lot in the way of a downpayment, such as newlyweds and recent college graduates. FHA does not directly make mortgage loans; instead it insures the loans that mortgage lenders make, protecting the lender from default. FHA's mortgage loan program tends to be more flexible than conventional mortgages in terms of credit history. This enables more borrowers, especially first time homebuyers, to qualify for home loan financing. FHA loans have certain minimum down payment requirements as well as limits on the amount that can be borrowed. The loan limits vary by state, and sometimes even by county. An FHA approved mortgage lender will be able to provide complete details on the loan limits in your area and other requirements of FHA insured loans. Another feature of the FHA program is the payment of FHA mortgage insurance. At the time of purchase, borrowers pay an up-front insurance premium (which may be financed). They also pay monthly premiums that are not financed, but instead are added to the regular mortgage payment. Home buyers can find additional information and details on FHA loans by logging on to: www.fha.gov. There are as many different home financing programs available from lenders as there are different types of home buyers. An FHA loan may not be for everyone, but it's nice to know it may help you get into the home you want. The best advice is to talk to a mortgage lender and explore all the options that may be open to you. I'd be happy to discuss with you the variety of home financing programs that GMAC Mortgage has available. GMAC Mortgage is one of the nation's leading mortgage lenders, offering you comprehensive mortgage financing and services that start before you find a home and continue long after you’ve made settlement. Submitted by:
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