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Whether you are a first-time home buyer, or are looking for a home that is a bit bigger for your growing family, you are probably looking at the financing options that are available to you. One of the most common home loans that Gershman Mortgage provides is the FHA loan. Find out more about FHA loans below.
What is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration. Borrowers with FHA loans pay for mortgage insurance, which protects the lender from a loss if the borrower defaults on the loan. The FHA loan was designed to promote homeownership and often makes it easier for potential homebuyers to receive the financing necessary to purchase a home.
Benefits of an FHA Loan
FHA loans are a popular home loan option for many buyers. Because these loans are backed by insurance from the Federal Housing Administration, many banks have more relaxed requirements compared to other types of home loans.
- Lower down payment: because there is added reassurance of repayment, either from the borrower or from the FHA, banks and other mortgage lenders require a smaller down payment than would be required by a traditional loan for the same property. The minimum down payment requirement on an FHA loan for borrowers who qualify is 3.5%.
- Home loans are based on many financial factors, including credit and income. FHA loans often have more lenient requirements in comparison to other types of loans for homebuyers.
Who Qualifies for an FHA Loan
To qualify for an FHA loan, a borrower must meet a number of requirements. The borrower must have a FICO score of 580 or higher and must provide evidence that their income is reliable and received consistently. The home must meet certain property requirements that meet FHA guidelines. The mortgage experts at Gershman Mortgage will help walk you through the specific requirements for your situation.
Why Choose Gershman Mortgage?
When you choose a home loan through Gershman Mortgage, you choose a team of mortgage experts with the knowledge and experience to ensure you are getting the best available mortgage for your situation. Since 1955, we have provided financing to hundreds of thousands of homeowners, making their home buying dreams a reality. To get started on your home financing journey, contact Gershman Mortgage online or by phone at 1-800-Gershman to find an office near you. We look forward to speaking with you!