FHA Loans

Dated: 11/25/2014

Views: 363

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.

Blog author image

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....

Want to Advertise on this Site?

Latest Blog Posts

6 Must Do Outdoor Spring Home Maintenance Tasks

 John Riha and Stacy Gilliam Preventive maintenance is crucial to the value of your home. Keep your place in tiptop shape with regular check-ups to save you the headache and cost

Read More

Autumn Maintenance Tips

Use these must-do fall maintenance tips to keep your house in shape and help keep you warm this winter. Regularly clean gutters and downspouts. Make sure all drainage areas are

Read More

Clean House Cut Clutter Get Organized At Home

By Cynthia Ewer, Author ofCut the Clutter: A Simple Organization Plan for a Clean and Tidy HomeIt's Autumn. Pumpkins glow in golden fields. Shorter days, crisp mornings signal winter's approach

Read More

12 Easy Steps To Prepare Your Home For Fall

BY SEE JANE DRILL ON 29 SEP 2017Get your home ready for cooler weather while it's still nice outside.The days are getting shorter, and the nights are getting cooler. The kids are

Read More