What is an FHA Loan?

FHA loans have been assisting many families throughout the years in the purchase of a new home. In fact, the FHA, or Federal Housing Administration was founded in 1934 in order to make it easier than ever for people to receive home loans for numerous reasons. Commonly, the FHA offers first time home purchasers reasonable loans. However, there are many other types of FHA loans to assist everyone from young couples to senior citizens. Continue reading to determine if an FHA loan or mortgage is perfect for your family.

One of the most common reason people turn to the Federal Housing Administration for loans is to assist them with the purchase of a new home. This loan is especially helpful for those who are first time homebuyers and have never purchased a home before. In fact, as a first time homebuyer with an FHA loan, you will be required to put very little money down on your new home. Additionally, it only requires 3.5% down or less with an FHA loan or mortgage. Another benefit of a first time home owner FHA loan is that the closing costs as well as the other fees involved can be included in the price of the loan. This makes it exceptionally easy for those who need assistance to get into their home without coming up with loads of additional money. Keep in mind however, that this FHA mortgage is only presented on 1- 4 unit properties.

Although a first time homebuyer’s loan is the most common type through FHA, there are other mortgages available as well. Through FHA, you can get a loan that will include repair costs as well as all the money you need to fix up your home or remodel. With a mortgage, you will have all your repair costs condensed into one simple loan. This can also be obtained if you simply want to refinance your mortgage in order to fix up your home.

Next, FHA offers help financially for seniors that are over the age of 62. To qualify for this loan, the senior must have a balance on their mortgage that is low, or own their home. This particular mortgage is called the FHA reverse mortgage. By taking out this loan, you are allowed to turn in equity that you own into cash when you need it. A mortgage like this is especially effective for those who need cash for medical expenses or any other elderly life change.

In addition to the above loans, FHA offers a special mortgage that is intended to make your home brilliantly energy efficient. The winter and summer months tend to be extremely hard for some people, due to rising utility costs. By taking out an FHA Energy-Efficient loan, your problems can be solved. Furthermore, FHA loans are also approved for those who live in mobile and modular homes. The type of loan you qualify for depends on if you live in a mobile home park, or own your own land.

No matter what type of loan you need, the Federal Housing Association can assist. Whether you are a first time homeowner or an elderly couple, there is an FHA loan that can benefit you. For more details, contact your preferred lender today.