FHA Loans - A good option for the first-time home buyer

Lower costs and a smaller down payment are just two reasons to think about an FHA loan. For home buyers with limited financial resources or a less-than-perfect credit history, FHA loan programs can provide first-time home buyers with another path to home ownership.

The Federal Housing Administration (FHA) doesn’t make or guarantee loans, they insure them. And they’ve been at it for over 75 years. The insurance on FHA loans minimizes or eliminates the default risk that lenders face when borrowers put down less than 20% of the purchase price of a home.

And because University is an FHA-approved lender, we’re authorized to process loan applications and close FHA loans. Our loan experts can educate you on all the ways an FHA Loan can be your best choice. Here are just a few things they’ll tell you about:

• Why it’s easier to qualify for an FHA loan
• Why it will cost less than a conventional loan
• How you can qualify with a lower down payment
• How competitive FHA loan rates are
• The ways you can qualify with less-than-perfect credit
• Why an FHA loan may be a smart refinancing option

Because these loans also have some specific conditions, like limits on the amount of the loan and income-to-debt ratio, it’s a good idea to consult a University Mortgage expert to help decide what’s best for your situation.

Here are some special requirements and conditions of FHA Mortgages:

• Loans are limited to 45% of your income
• Mortgage limits are based on local median prices

Contact us and find out if an FHA Mortgage is right for you.