First Time Home Buyer Government FHA Loans Assistance
In 2012 FHA loans were up and many first time home buyers purchased a home using Federal Housing Administration-insured mortgage.
A FHA insured loan is is a government backed mortgage loan, provided by a FHA approved lender. They come in great use for first time buyers and lower income households.
An FHA loan required mortgage insurance to protect the lender against losses that result from defaults.
Some of the main differences and advantages of a FHA loans are that the credit qualifying criteria for a borrower with a FHA loan are not as strict as a conventional loan. Financing and down payment or equity requirements are less. Also Mortgage insurance remains a tax deduction for income levels under $110k
One drawback to FHA loans is that there are lending limits on FHA loans. These limits depend on state and city. See link below http://www.fha.com/lending_limits_state.cfm?state=CALIFORNIA
You should try and qualify for a FHA loan if:
- You are a first time home buyer
- You have little cash for a down payment and closing cost
- You have imperfect credit
- You want to keep your monthly payments as low as possible
- You are concerned you may not qualify for a loan
- You are concerned about possible monthly payment increases
With very low interest rates and bottomed out home prices, 2013 should be a great year to become a homeowner or to get back into the market. Be sure to do your research and homework. Find the right loan for you and contact the right lender and real estate agent to assist with the process and transaction.