An FHA Loan is a mortgage loan insured by the Federal Housing Administration. FHA loans usually have a lower down payment and are often easier to qualify for than other types of mortgages.
The FHA is a government agency that offers low-down-payment mortgages to first-time homebuyers. The minimum down payment for an FHA Loan, as of today, ranges from $0 with no reserves up $500 in cash or liquid assets (you can also use gift funds), and the maximum you can borrow using one of these loans ranges from around $314,000 – depending on your location – to $729,990.
FHA loans allow low-income families to qualify for homeownership. FHA’s goal is to ensure that these individuals can live in safe homes, free from the dangers of overcrowding and inadequate space. It also helps people who may not have enough money saved up for a down payment on their house maintain homeownership!
If you are a first-time homebuyer, or someone with low to moderate-income who wants to buy a house and your credit score is 600 or higher (or you have enough money saved up for the down payment), then an FHA loan may be right for you!
How do I qualify for an FHA loan?
The Federal Housing Administration (FHA) offers home loans to low- and middle-income families. To qualify for an FHA loan in Cedar City UT, you will need a good credit score in the range of 580 – 620 or higher as well as sufficient annual income that is approximately within the limits set by HUD; which are $65,000-$74,950 with two dependents and $41,050-$50,400 with one dependent.
You can also use gift funds from family members towards your down payment if it meets certain requirements. To find out more about qualifying for an FHA Loan contact our office today!
How much can I borrow with my FHA Loan?
You can borrow up to 100% of the appraised value for a home or 96.75% – 97.25% (depending on your down payment) of the purchase price, whichever is lower.
Should you get an FHA Loan?
In Cedar City, UT the low down payment FHA loan is a good option for many first-time homebuyers (especially if you don’t have much saved up), and it can be helpful in some tough economic situations.
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What are the benefits of an FHA loan?
The main benefit to getting an FHA Loan in Cedar City UT as opposed to a conventional loan is that your mortgage insurance premiums will not increase when you refinance or take out equity – so this could save you thousands over time!
Contact Legacy Mortgage Today!
Legacy Mortgage is a nationally recognized FHA Loans brokerage company specializing in both refinance and new home loans. We can help you turn your dream of a gorgeous, custom-built house into reality by providing the most competitive rates on mortgages available anywhere today!
Come see why we have so many happy customers!