FHA Down Payment

Becoming a first time homeowner is part of the American dream. Unfortunately, in these tough economic times it is a dream that is not often realized by many Americans. This is where the FHA comes in and helps people who want to become first time homeowners. The FHA does this by offering really great benefits that make the entire loan process much simpler and more affordable than you would find with a conventional loan. One of these benefits is the low down payment feature.

How much am I required to pay?

With a typical FHA Loan, it is possible to qualify for a loan for up to 96.5% of the total cost of the house. The remaining 3.5% is what you will be expected to supply for a down payment. While you may think this is still too much, consider the fact that most conventional loans charge around 20% for a down payment. This exorbitant price for a down payment is often what stops American families from becoming first time homeowners.

Can I qualify for a loan with no down payment?

The FHA requires that you pay some portion of the loan as a down payment on the house. However, there are other government-run programs around that can help pay for the cost. The American Dream Down Payment Initiative (ADDI) provides the down payment, closing costs and rehabilitation assistance to eligible candidates. Be sure to check out the Department of Housing and Urban Development (HUD) website to find out more about qualifying for the ADDI.

How big of a loan can I qualify for?

How much you qualify for depends on your financial situation and what the county’s loan limit is. The FHA sets a cap on how much they are willing to insure which varies from county to county and changes based on the size of your family. You can find the loan limits for you county on the HUD website.

Is it easy to get approved?

Yes! Getting approved for an FHA Loan is much easier than getting approved for a conventional loan. The FHA is much more lenient when it comes to credit scores, so even if you had a bankruptcy in your past you might still be able to qualify. You can even get pre-qualified today by filling out our secure our 1 minute FHA Loan form. It’s free with no obligations, making pre-approval easier than ever!

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