FHA Home Loan
An FHA loan, or a Federal Housing Administration loan, is a government-insured and sponsored loan that has plenty of flexible loan options. Applying for and obtaining an FHA loan is a route that many take, as it typically has fewer credit requirements and qualification requirements for approval.
At QuestRock, we strive to help each of our clients save money, even if they are investing in a home for the very first time or own their own businesses
How FHA Loans Work
Once you are qualified for an FHA loan, you will have the ability to purchase a single-family home, townhome or a condominium with as little as 3.5% down.
Keep the following in mind if you are considering an FHA and you are self-employed or a business owner:
- FHA loans allow those who qualify for the loan to pay off their loans at any time. This means, if your business is doing well and you are tired of having a mortgage payment, you can pay off your loan without incurring prepayment penalties or early repayment fees.
- If you are interested in an FHA loan but are searching for more flexibility, some FHA loan solutions offer 5-year adjustable-rate mortgage solutions.
- For fixed-rate loans, 15, 20, 25, and 30-year terms are all available.
Benefits of an FHA Loan
Choosing the right loan option when you are investing in any type of real estate can feel confusing and overwhelming, especially if you are new to the process. Some of the benefits that FHA loans provide include:
- Lower down payment requirements are in place for those who are seeking FHA loans, which can help lower-income families and self-employed professionals to secure a home mortgage loan with little hassle.
- In many cases, FHA mortgage rates are lower than standard conforming or private mortgage loans.
- With an FHA loan, it is possible for sellers to pay up to a total of 6% of closing costs, as opposed to the traditional 3% of conventional and traditional mortgage loans. This can significantly motivate buyers who are looking to save on costs when investing in a new home
- FHA loans can be assumable. This means that whenever a home that has been purchased with an FHA loan is sold, buyers have the opportunity to take over an existing FHA loan that is already in place. This can be extremely beneficial for those who are looking to take advantage of a locked-in interest rate (or a lower interest rate), depending on the current state of the housing market and economy.
With an FHA loan, allow us to help you apply for the loan you need quickly and with the potential to save even more money than with a standard mortgage or loan, even as someone who is self-employed.
Qualifications and FHA Loan Features
- Invest in a new home with as little as 3.5% down when taking out a mortgage for your primary home.
- With a qualifying FHA loan, you can refinance up to 96.5% of your primary home’s overall value.
- Individuals with a credit score of 580 or above may apply and qualify for an FHA loan.
Are you searching for ways to cut your mortgage payment by 20 to 30 percent? Do you want to take another look at your current mortgage options for the best possible outcome? If so, let QuestRock help you on your journey to becoming a homeowner.