Osborne Realty

What You Need to Know About FHA Loans

by Judy Osborne 09/01/2019

Buying a home is a beautiful feeling, but dealing with the financial aspect of it can be tiring. Well, thanks to mortgages, the financing is no longer a headache. From conventional to Government-insured mortgages, homeownership is now a dream that can be turned into reality once you have done your homework, arrived at a budget, reviewed your credit and nailed down your down payment amount.


The America government is not a mortgage lender but has been helping many Americans become homeowners. How? Through government agency loans, namely:

- Federal Housing Administration, also known as FHA, loans

- The U.S. Department of Agriculture, also known as USDA, loans

- U.S. Department of Veteran Affairs, also known as VA, loans

This article will cover FHA loans: how they work, who is eligible, and everything you need to know about it. 


What Is an FHA Loan?

FHA loans give borrowers who do not have a significant down payment saved up and don't have good credit the opportunity to own a home. Since its inception in 1934, the FHA has insured over 40 million home loans.


Types of FHA Loans

FHA mortgagee loans come in different forms. Each form is dependent on your assets, income, age, and current home equity, should any be present. There are seven types of FHA loans:

- Fixed-Rate Purchase Loan

- Adjustable-Rate Purchase Loan

- Condominium Loans

- Secure Refinance Loan

- Home Equity Conversion Mortgages

- Graduated Payment Loan

- Growing Equity Loan


Closing Costs

Like other kinds of mortgage loans, FHA loans come with closing costs. However, expenses may be different depending on lenders, market conditions, geographic location, and down payments.

If you wish to lower your closing cost, you can do so by increasing your credit score, shop through multiple lenders, check for settlement and title companies, or negotiate with the lender you've selected.


FHA Loan Pros and Cons

FHA loans have many benefits such as low down payment, better interest rate, and credit score flexibility. The only downside of FHA loan is that you have to get mortgage insurance that stays with you throughout the life of your FHA loan.


What You need to qualify for an FHA Loan

You will need some form of identification to begin qualifying for an FHA loan. Driver licenses, military IDs, passports, or any other kind of government-issued ID is an acceptable form of identification. You'll also need your bank statements from the last two months and investment statements from the last two years. Be sure to have at least one month of pay stubs available, as well.

If you run a business or you are self-employed, you will be asked to provide:

- Your current tax year profit and loss statement 

- At least two of your recent tax returns

Talk to a mortgage and loan specialist to get the process started.

About the Author
Author

Judy Osborne

Thank you, for taking your time to visit our website for buying or selling your home investment in the Pineville, Ballantyne,  Fort Mill and Charlotte and surrounding area. Osborne Realty will work with experienced home buyers, and experienced sellers or first time home buyers, and first time home sellers, builders, and investors.  It may be an excellent time for you to buy or sell a home.  Home ownership is the most significant investment most people make and the only investment that you or someone else lives in! Whether you are planning to stay here for a few years or the rest of your life, you will enjoy the stay. The good news is that most Charlotteans are not from here either. Like you, people hail from all over for reasons ranging from work to weather. Although some will tell you, the southern hospitality, BBQ, and sweet tea sealed the deal. You'll fall in love with Pineville, Charlotte, Ballantyne and Fort Mill or any area you like!


"All I can strive to be is the absolute best possible version of myself." real estate business is all about listening to you, our client, to find out what you expect either selling or buying a home.   Osborne Realty is dedicated to learning about your hopes and dreams concerning the most significant investment most people make and how best to help you achieve your realistic expectations. When you are buying or selling property in today's real estate market, it's essential to have confidence in your real estate professional. Our commitment as your local REALTOR® is to provide you with the specialized real estate service you deserve. Osborne Realty knows we have accomplished your goals when you refer a  family member or friend to sell or buy with us.  We appreciate your continued relationship and look forward to becoming your Realtor for life that tells others about how we help people every day with the selling and buying of homes.

When you are an informed seller or buyer, you'll make the best decisions for the most important sale or purchase in your lifetime. That's why our goal is to keep you informed on trends in the marketplace using the latest statistics in your local area. With property values continuing to rise, real estate is a sound investment for now and for the future. If you are considering selling or buying a home or would just like to have additional information about real estate in your area, please don't hesitate to call or e-mail us. Thank you for visiting PinevilleHomes.com - please consider it as your online source for local real estate information, and often return for the latest property listing updates.

Pineville, Fort Mill, and Ballantyne or any area you like Realtor!


Judy Osborne

Osborne Realty (704) 763-4486

E-Mail: [email protected]