What are the benefits to FHA loan?
The FHA loan is a mortgage issued by an FHA-approved lender and insured by the Federal Housing Administration (FHA). FHA loans generally have lower requirements than other mortgages. If you have a credit score of 580 or higher, you can purchase a home with a 3.5% down payment! This makes it easier for people to qualify, even those who have lower credit scores or a questionable credit history.
FHA Loans and Used Homes
FHA loans make it easier to purchase a new home, but easier to purchase does not mean it’s easier to buy a property. If the property you are looking at does not meet the minimum standards for a FHA loan, then you will be out of luck looking for a different property that does meet FHA requirements. Click here to learn about FHA loan requirements.
What homes qualify for FHA loan?
Most homes qualify for FHA loan. However, the home must be sound and pass an inspection. If the inspector finds problems, then the issues must be repaired before the buyers can close. If problems are found, your best option is to ask the seller to make the repairs. Unfortunately, the seller can refuse to pay for the repairs. If this happens, you can possibly increase the purchase price to accommodate the costs of repairs.
Also, depending on the state of the home, you may need get a rehabilitation home loan, and your FHA loan could have a higher interest rate. Closing on a rehab loan can be more complicated than a traditional loan due to the issue of estimating the cost of repairs; therefore, you never know exactly what you are getting into.
Before a lender finalizes FHA loan, they will require an inspection on the property. The inspector will look at the integrity, safety and value of the property.
The amount of money you are closing on is cost of the house plus the estimate for repairs necessary to close. Unfortunately, you may run into more costly repairs after your inspection takes place. So why not just buy a new home!
All our homes will qualify for FHA loans!
That's right - if you have a lower credit score or can only put down a low, down payment, you can finance one of our homes with FHA loans! Click here to find a new home by Home Creations!
Home Creations has participating lenders who can help you through the finance process of purchasing a new home. Simply visit this link or contact Holly at 405.364.9999 and she will get you in contact with one of them!