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:
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.
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.
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.
How do I find an FHA-approved lender? Just ask your Realtor or your local bank.
Author:Ann Marie Cancro Phone: 717-468-1301 Dated: November 25th 2014 Views: 351 About Ann Marie: LICENSED: Licensed Real Estate Professional since October 1990.
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