Saturday, March 21, 2009

Purchase a home with as little as 3.5% for Down Payment

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. Since the typical first-time FHA home loan applicant is young and in the early phases of their careers, chances are they still have student loans and other debt to content with; an FHA home mortgage often costs less and is more forgiving of youthful 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; that typical borrower in the early stages of a new career often doesn’t have a lot of money set aside specifically for purchasing a home. 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.

To read more about the FHA loan program as well as the guidelines and requirements, visit http://www.fha.com/important_facts.cfm

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