Baltimore FHA Loan

If you are planning to buy a new house in Baltimore, right now is the perfect time to apply for an FHA home loan. The Federal Housing Administration (FHA) was created in 1934 as a way to help families afford new homes during the hard economic times. Since then, the home loan program has successfully helped millions of Americans become proud new homeowners, and many more to avoid foreclosure. Take a look at the advantages of FHA loans to see how it can help you.

Advantages of FHA Loans

The first major advantage of a Baltimore FHA loan is the low down payment compared to conventional loans. While conventional loans can charge anywhere from 5 to 20% for a down payment, the FHA only requires 3.5% down. The FHA is also very lenient when it comes to who supplies this money. This means that if you cannot afford the down payment, you can have a friend, employer or charitable organization pay the upfront costs for you. You can also choose to go through the American Dream Down payment Initiative (ADDI) to obtain the down payment for your new home.

Additional Benefits

There are many great benefits of Baltimore FHA loans in addition to the low down payment feature. When you go through the FHA, you’ll be able to take advantage of really great, low interest rates. You also won’t be required to pay for private monthly mortgage insurance, making the total cost of the loan that much lower. The other benefits include easy approval, flexible repayment plans and simple refinancing options.

Types of Loans

Besides the standard FHA loan, there is also an Energy Efficiency Mortgage (EEM) and 203(k) mortgage offered by the FHA. The EEM is for people who want to make energy efficient upgrades to the house they plan to buy. These upgrades can include things like new solar water heaters and low-flush toilets. The 203(k) is for houses that need a lot of repair work done to it. This mortgage rolls the cost of acquisition, repairs and final value of the house into one loan.

Get Started Today!

Get pre-approved for a Baltimore FHA loan today by filling out our secure online form. It only takes a minute, is 100% free and has no obligation.

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