Is an FHA Loan Right for You?
The Federal Housing Administration (FHA) knows the tremendous value homeownership can bring to people’s lives, communities, and our nation, which is why it was founded in 1934 to boost home sales and our economy. The government organization offers special mortgage insurance to lenders as an option to help more people who may not qualify for a Conventional or other type of home loan, qualify through an FHA loan in Corpus Christi, TX.
When applying for a home loan, an FHA loan may be the right option, especially if you:
- Are a first-time homebuyer.
- Have a lower credit score.
- Want a low down payment.
- Are refinancing a high-cost mortgage.
FHA loan benefits and features include:
- Low down payments with a minimum of 3.5%. Mortgage insurance is required.
- Credit scores as low as 580 accepted.
- Gift funds can be used for 100% of the down payment or closing costs.
- Fixed-rate and adjustable-rate mortgage options are available.
- Flexible qualification guidelines.
It’s important to remember that the FHA is not a lender. Through government support, the FHA insures a home loan to those who qualify, which alleviates the risk for private mortgage lenders of non-payment and foreclosure. It’s a win-win!
An FHA loan could be someone’s steppingstone into homeownership. Equity built over time could be put toward renovations or another home. It’s commonly thought that the down payment for a new home must be the standard 20% down but with the FHA loan, a down payment as low as 3.5% is possible.
Buying a home may be one of your most important purchases for you and your family, so make sure you find the right home loan that fits your situation, with the right mortgage lender to guide you through the process.
If you’re ready to see if an FHA loan or other home loan program is right for you, we can help! Click here to get pre-qualified or contact the Supreme Lending Pitarra Region today at (361) 452-1222.