An FHA loan is a mortgage insured by the Federal Housing Administration. The Federal Housing Administration is a government agency within the U.S Department of Housing and Urban Development. Borrowers who receive FHA loans pay for mortgage insurance. This insurance protects the lender in case the borrower were to default on their loan.
Because of this mortgage insurance, lenders can and most often do offer FHA loans with attractive interest rates and more flexible requirements for qualification.
Here are few facts all buyers should know about FHA loans:
Less than perfect credit is okay. Each borrowers creditworthiness is considered in context.
Minimum down payment is 3.5%. This is a fraction of the percentage required on most home loans. Borrowers can use their savings as a down payment. Other forms of payment are allowed such as money from a family member as a gift or grants.
Closing costs may be covered. The FHA allows home sellers, builders and lenders to pay some of the borrower's closing costs. If the the lender does pay closing costs, the interest rate of the loan is typically higher.
Irmo, Chapin & Lake Murray Real Estate – Carl McClure. We here at Exit Midlands Realty are committed to helping you with your real estate needs
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Author:Gready Frazier Phone: 803-924-5785 Dated: March 11th 2014 Views: 2,174 About Gready: I am a licensed Real Estate Broker with over 15 years experience of real estate sales in the Columb...
Chapin, SC is known as "The Capital of Lake Murray" and with good reason. The residents of Chapin enjoy a relaxed lifestyle with the convenience of the city. Columbia, SC is just a quick 20 minute drive and shopping is even closer.You are embarking on an exciting journey, be sure that you find agents that will take time and share your enthusiasm during this process.
EXIT Midlands Realty is a full service real estate firm dedicated to assisting our clients with the purchase and sale of real estate in the Greater Columbia Area. We were founded in 2005 and quickly grew into one of the most innovative and knowledgeable firms in and around Columbia. Our staff is made up of full time professional agents that are dedicated to the profession of listing and selling real estate.
Call one of our experienced agents to assist you with your real estate needs. It would be an honor to work with you.