What is an FHA Home Loan?

FHA Home Loan

What is an FHA Home Loan?

As a Senior Loan Officer with Cason Home Loans in Michigan I have the opportunity to discuss the benefits of an FHA Home Loan with many home buyers.

What is an FHA Home Loan?


 

FHA stands for FEDERAL HOUSING ADMINISTRATION.  An FHA Loan is a fixed or adjustable rate loan insured by the U.S. Department of Housing and Urban Development.  FHA loans are designed to make housing more affordable, particularly for first-time home buyers.  While there are limits to the size of FHA loans, they are generous enough to handle moderately priced homes throughout Michigan.

Wikipedia on FHA Loans https://en.wikipedia.org/wiki/FHA_insured_loan

Why should a buyer consider an FHA loan?


One of the main reasons a buyer would consider an FHA loan is that it is a low down payment program (minimum down payment is 3.5% of the total purchase price)

FHA loan guidelines are flexible.   Bad things can happen to a good person’s credit.  Borrowers who lack an established credit history or have experienced credit challenges in the past will welcome the flexibility of an FHA loan.

Gift funds are allowed from a family member.  This is a very attractive benefit of the FHA loan program that may make your dream of home ownership a reality far sooner than you ever imagined.

When purchasing a home your offer can include up to 6% in seller concessions.  That means that the seller can contribute to pay for a portion of if not all of your closing costs.  This of course is dependent on the seller agreeing to these terms as part of the purchase agreement.


Have questions about FHA Loans or want to get the process of home ownership started? Contact me or download my free mobile app

 

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