FHA Loans

Dated: 11/25/2014

Views: 355

Q.  What should I know about FHA loans if I’m thinking about buying a home soon?
  A. An FHA loan is a mortgage insured by the Federal Housing Administration (FHA) that offers favorable terms for those who qualify, particularly first-time home buyers. Here are some important details:
 
  1. Is mortgage insurance required? Yes. Because only 3.5% of the purchase price is required as a down payment, FHA loans require you to pay private mortgage insurance. This protects the lender from a loss if the borrower defaults on the loan.
  2. Can you use gift monies with FHA loans? Yes, you may use a gift from a friend or relative for the 3.5% FHA down payment.
  3. Do I get the loan directly from the FHA? No. You need to get your loan through an FHA-approved lender. Costs, services, and underwriting standards vary.
  4. How do I find an FHA-approved lender? Just ask your Realtor or your local bank.

Paul Snyder III

I am a specialist in the management and sale of bank owned AND investment properties throughout SE and Central Pennsylvania. Our team of (14) real estate agents and (3) support staff are here to e....

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