Millions of Americans use FHA loans to purchase homes. These loans are extremely popular among buyers who do not have stellar credit or the money to put down a large down payment. Whether you’re a first time home buyer or are looking to refinance, FHA home loans may help you get into the home of your dreams.
If you’re considering loans for buying a house, federally insured loans like FHA loans may be helpful options – given their benefits. Mortgage lenders are protected when it comes to these types of loans, which allows them to provide the loans with low down payment options and often more lenient credit requirements. Learn more about FHA loans and see how they may be right for you.
Buying a house can be a huge financial investment. If you’re a first time home buyer, you might be taken aback when you see the amount of money that needs to be put down. You might also feel a bit disappointed – like countless other Americans – thinking that you can’t afford it.
But don’t make the mistake of thinking that you’re out of luck or out of options. You may still become a homeowner with the right loan assistance.
Hundreds of lenders offer loans for buying a house that ease the stress of the purchase. Otherwise known as a mortgage, these loans allow you to pay a designated sum of money up front – known as a down payment – and roll the remaining money into easier-to-manage monthly payments.
The down payment amount you will be asked to pay depends on a few factors, such as:
- Loan type – such as an FHA home loan vs. a conventional home loan.
- Credit score – typically, the lower your score, the higher your down payment needs to be.
- Mortgage lender – some lenders may waive the down payment requirement for certain borrowers.
And, if you are a first time home buyer, you might qualify for other perks that ease the stress of your purchase. Many cities and towns have programs specifically geared toward first-time buyers that waive fees or provide financial assistance.
Securing loans for buying a house typically follows a simple 4-step process, including:
- Finding a lender – You can find hundreds of mortgage lenders, both local and national, by searching online.
- Getting prequalified – This involves sending information about your income and finances to the mortgage lender in order to find the total amount of money you can borrow.
- Finding a home – The home you wish to finance should fall within the loan amount stated in the prequalification.
- Having the property approved – The lender will approve or deny the home after examining the details.