For my people, this is the only way they'll ever be able to buy a house. So, if you want to buy a house in the next year, you should learn as much as you can about FHA and any other programmes that may be available to you. Most of these programmes don't last forever, so you need to act quickly because things change.
What is FHA, then?
The Federal Housing Authority, also known as FHA, is a government agency that was started in the 1930s, in 1934 to be exact. Its purpose was to make it easier for people to own their own homes by protecting the lenders who give mortgages to homeowners with insurance.
You should know that FHA is an insurance company and doesn't actually give out loans.
So, what sort of loans does it cover?
The following three are the most common and well-known ones:
- The 203(k) loan is for fixing up and fixing up single-family homes.
- The 203(h) is meant to help people who lost their homes in a major disaster and are now rebuilding or buying a new one.
- 203(b): They have fixed rates for 10, 15, 20, and 30 years.
The bottom line is that you might be able to buy your next home with one of these loans, since the minimum credit score required is only 580. You can also refinance as long as your loan to value is at least 85%.
There are many other benefits to using FHA. For example, they make it possible to get a loan in many situations where a normal lender would turn you down. You should know that not all lenders are FHA-approved. If they are not approved, they can't offer the FHA option. To get approved by FHA, all lenders and mortgage brokers must go through a long, time-consuming, and expensive process.
Ask potential lenders if they are approved by the FHA when you meet with them.
