Owning a home is a great achievement especially to the first-time homeowners, but also a distressing thing without proper financing. However, numerous home loan programs have come up to help you own a home without hassling much.
The FHA mortgage loans are among the most convenient home loans you can use to finance your home-owning project. This mortgage loan is greatly effective to those who are buying homes for their very first time. The FHA Mortgage Loan comes with the following benefits:
- Lower mortgage rates: This type of mortgage loan has the best interest rates for all home buyers compared to the interest rates of other traditional loans. Here, credit does not influence the interest rate, as it happens with other conventional loans. Low interest rate factor is a factor you should consider avoiding accumulation of huge interests.
- Mortgage amount limits: The FHA loan has certain loan limits that HUD establishes and sets. However, you have the opportunity to consult your loan advisor to determine the favorable loan limit that your mortgage should have. This opportunity is not available in many other loans out there.
- Seller paid closing cost: According to the FHA loan terms, the seller can contribute up to three percent towards the closing cost of the buyer. This helps the buyer to locate a new house and reduce the closing cost significantly. Moreover, the seller may pay the interest on the loan, home insurance, taxes and the closing cost among other prepaid items.
- Reduced down payment: Home buyers benefit greatly from the lower down payment that the FHA loan offers. Money to fund the down payment may come from different sources such as from the family members, 401K loans, withdrawals, money from the saving accounts or even churches among others. The FHA loan lenders allow you to solicit for your down payment money from these sources, thus making your home-buying dream achievable.
- Mortgage insurance: The approval of your FHA loan insurance will take place immediately your FHA Mortgage Loan is approved. It is not possible for you to have insurance on other loans.
Other than just providing you with the home loan, Village Mortgage also updates you on the loan process progress and maintains friendly interest rates on the loan you take.
