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FHA loans are one of the best options for young, first-time home buyers who have not had as much time to save for a large down payment or establish a high credit score.

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Which FHA Loan Is Right for Me?


Which FHA Loan Is Right for Me?
A new house is one of the most expensive purchases most people will make in their lifetimes. Throw in the number of mortgage options to choose from, and it can become an overwhelming decision to make. While it may be stressful, knowing your options goes a long way in narrowing down to pick the one that’s best for you! 

Many borrowers go with the route of an FHA loan. This is because of the numerous ways the FHA has designed their mortgages with first-time homebuyers in mind. FHA loans have a minimum credit score stipulation of 580 with a low- down payment requirement of 3.5%, making it easier for my buyers to qualify.  

Another reason many Americans go with FHA loans is that there are a number of mortgage programs that can fit different needs. Here are few of the most popular FHA loan programs: 

FHA Fixed-Rate Loan 

The fixed rate FHA Home Loan is a popular mortgage choice. With this type, the interest rate remains the same through the term of the loan. The consistent interest rate means that monthly payments remain the same. This is a good option for homebuyers who want to rely on fixed payments to help them set long-term budgets. 

FHA ARMs 

An Adjustable- rate mortgage (or ARM) has an interest rate that changes over the term of the loan. After an introductory period with a fixed, low interest rate, the rate changes annually, increasing or decreasing, depending on the market indices approved by the FHA. An adjustable- rate loan may work for borrowers who intend move out of the home within a few years. That way they can capitalize on the initial low interest rate and sell before the rates rise. 

FHA One-Time Close Loan 

The FHA One-Time Close Loan is a construction-to-permanent loan that finances a lot purchase, construction, and permanent loan of a new home as part of one, single mortgage. Borrowers need to qualify just once and pay a single set of closing costs whereas before, they were required to go through the closing process twice, once for the construction loan, then again for the permanent mortgage. The FHA One-Time Close Loan is a great option for those looking to build their home from scratch! 

FHA EEMs 

The FHA's Energy Efficient Mortgage (EEM) is a special loan program that finances various energy-efficient home improvements as part of a home loan. Along with helping borrowers pay for upgrades on their home, the FHA’s EEM program helps them save money on household utility bills by allowing them to install energy saving appliances in their home. The EEM program is a great way for FHA borrowers to upgrade their home, and can also be used as part of a refinance. 

FHA Condominium Loans 

In addition to buying single family homes, the FHA finances the purchase of condominiums with its Section 234(c) loan. These loans come with a 30-year term and borrowers can buy residential condos that have at least two units and are located in an FHA-approved condominium projects.  

With all the options that the FHA offers, there is bound to be a program that fits your mortgage needs.

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FHA Loan Articles

FHA One-Time Close Construction Loans: Issues to Consider

It’s a great option to consider if you want to build your dream home on your own land instead of buying someone else’s already-lived-in house. FHA One-Time Close mortgages are also referred to as single-close construction loans--you’ll see these terms used interchangeably.

FHA Appraisal Rules for Basements

The appraisal process is a very important part of buying a home. When you are budgeting and planning for your loan, you may want to set aside some extra funds in case there are corrections required as the result of an appraisal.

How One-Time Construction Loan Funding Works

There is a major question some new borrowers have about home loans in general, that also applies to construction loans in particular. If you want to apply for an FHA One-Time Close construction loan, there are certain rules about loan funding that you should know about.

What Kind of Home Loan Works for Me?

Once you’ve decided that you’ll be purchasing a home, one of the first questions you need to ask yourself is what kind of mortgage you’ll be using to finance it. When it comes to shopping for a home loan, there are a number of options to consider.

Everything You Should Know About Appraising for a Refinance

Savvy homeowners make it a point to monitor interest rates so they can take advantage of a drop. Many choose to refinance their mortgages to capitalize on falling rates and lower their monthly payments and save on interest.

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