More and more buyers I am working with want to know the benefits and procedures for applying for and qualifying for an FHA loan and since this topic is important I wanted to post some more information they could refer back to for help.
Obtaining an FHA loan is a great opportunity for some borrowers but what are the requirements and how can you go about applying?
The homes that qualify for FHA loans are one to four unit housing, condominiums as long they are your primary residence, new or existing homes, manufactured or mobile homes and homes needing rehabilitation. For homes needing rehabilitation the home has to be located in an urban, older or declining area, and you can use $5,000+ for rehab costs including the mortgage.
The down payment requirement for FHA loans is 3.5 percent of the home purchase.
FHA loans are also available for special targeted buyers including public servants such as police and firemen, homeowners over 62 years old, victims of disasters and people living on tribal reservations or restricted lands.
FHA loans are adjustable rate mortgage loans with a maximum rate increase of 1 percent over the life of the loan. For more information on FHA loans and how to apply check the FHA home page online at www.fha.gov or by calling 1-800-CALLFHA (225-5342).