Qualifing for FHA Loans and Mortgages
We have seen a great deal of interest in FHA loans and mortgages, in the Stockton and Lodi area. Homebuyers are turning to these government backed loans. FHA loans are mortgages issued by qualified lenders and insured by the Federal Housing Administration. They have stable interest rates and qualifying for a mortgage has been easier. It has been estimated that 84% of the loans in the area are FHA loans.
These loans are especially attractive to first time home buyers and also move up buyers. They have a low down payment 3.5% of the purchase price. There are common misconceptions about FHA loans and this Stockton Lodi Real Estate Blog attempts to clear some of these up.
· FHA loans are not only for first-time buyers but for Move up home buyers. Potential buyers believe FHA loans are available only to first-time home buyers, but this is not the case. Regardless of whether buyers are making their first home purchase or 2, 3.4 or more, they are eligible to use the FHA loan a financing alternative.
· FHA loans are often more affordable than conventional loans. While FHA loans typically offer the same interest rates as conventional loans, homebuyers have the advantage a lower down payment of 3.5% rather than the traditional 10 to 25% down payment..
· FHA loans can be assumable if the potential homebuyer qualifies. Credit-qualifying requirements are eased as compared to conventional loans, FHA loans are assumable. This means that when a seller with an FHA loan sells his or her property, the loan and its financing terms can be transferred to the new buyer. This attractive benefit will make a home more valuable in times of increasing interest rates and easier to sell.
· Another great advantage of FHA mortgages: they are not just meant for small mortgages in fact, loan can be as high as $793,750.
Home buyers and potential sellers should understand the options available to them when they are considering a home purchase. The Lilly Team at PMZ Real Estate has worked home buyers in preparing
them to purchase their first home or 2nd home. Our mortgage finder service is the first step in getting qualified to buy a home. Call Hugh Lilly at PMZ Real Estate at 209-479-9222 or e-mail him at thelillyteam@comcast.net or visit the team’s web-site at www.hughlilly.com . Search for all Stockton listing at www.listings.hughlilly.com .