What is a FHA Mortgage?
FHA loans are a great option for first time home buyers. Your down payment can be as low as 3.5% of the purchase price, and your closing costs and fees can be covered through seller concessions. A FHA loan is insured by the Federal Housing Administration. Borrowers with FHA loans pay for mortgage insurance, which will protect the lender from a loss if the borrower defaults on the loan. There is no minimum income required, you will just need enough to demonstrate that you can repay the loan. For more information on FHA Loans contact us today at (413)930-6647!
Benefits of an FHA Loan
FHA allows borrowers to spend up to 56% of their income on monthly debt obligations, such as student loans, mortgage payment and credit cards. Another great upside to a FHA mortgage is that you are able to receive a gift for your down payment and closing costs.
Because borrowers pay for mortgage insurance, lenders can offer low rates with lenient and more flexible qualifications. The minimum credit score for a FHA mortgage is 580 with the low-down payment of 3.5%. For more information on FHA loans and how to get qualified contact us today at (413) 930-4766.