- FHA Loan:
- The Federal Housing Administration (FHA) works to make the home ownership a possibility for more Americans by making it easier to qualify because it requires a low down payment (3.5 percent) and you can have less than perfect credit. The FHA doesn’t actually make home loans, but is rather an insurer of loans. FHA loans are generally marketed as a first time home buyer program but the truth is anyone can qualify as long as the property being purchased is intended to be your primary residence. The FHA loan limits set forth by the state and county must be met. Chester, Delaware, Montgomery, Bucks, and Philadelphia counties for example have a maximum single family loan limit of $385,250. As long as you meet the credit requirements, can afford the mortgage payments and cash investment you can qualify for an FHA loan.
FHA loans are an attractive option, especially for first-time homeowners:
- Generally easier to qualify for than conventional loans
- Cannot exceed statutory loan limits.
- Credit Scores down to 580
- 3.5% Down Payment
- Gifts from an acceptable source can be used for down payment and closing costs.
- 6% Seller Assist