A lot of home buyers are stunted because of their lack of funds. Even when they’re not planning to pay the whole price of the residential property, the huge sum of the down payment blocks them from acquiring the house they want. This is why the government has offered FHA loans.
What is the FHA Loan?
An FHA loan is a mortgage that is offered by lenders that are federally qualified to do so. The government body that is in charge of granting licensures to issue FHA loan is the Federal Housing Administration.
What is the Purpose of FHA Loans?
FHA loans are created for low-to-moderate income borrowers who don’t have enough cash to make a huge down payment when purchasing a house or property.
Why Opt for FHA Loans?
According to surveys conducted in the past several years, about 40% of home buyers under 37 get FHA loans when purchasing their homes. If you want to buy your own house as soon as possible, then using an FHA loan is the right choice. Here are some of the reasons why it is so:
- Have Lower Mortgage Rates
This is perhaps the highlight of FHA loans. Since the government backs it, licensed lenders can easily offer FHA mortgage at rates that are much lower than conventional loan rates. According to mortgage software firm Ellie Mae, the FHA rates are about 0.15% lower than the mortgage rates of conventional ones.
- Qualify Easily Because of Lenient Requirements
Most home buyers are drawn to FHA loans like bees to a flower because of its lenient requirement. For you to qualify for an FHA loan, you can have less-than-perfect credit scores. Some lenders issue loans to borrowers with FICO scores as low as 580.
- Carry a Lower Loan Balance
Since FHA loans have less-than-stringent requirements, a lot more people can qualify for it. Due to its accessibility, you can easily make the exact down payment. Paying a huge percentage of the selling price as down payment helps you lower your loan balance. This will make it easier for you to map out realistic financial goals that help you pay for the remaining balance on time.
- Keep Your Emergency Funds
Lastly, with an FHA loan, making that down payment cut which is usually twenty percent means that you don’t have to dip in your emergency funds. You can increase your financial security by not having to touch your savings.
In the current home buying climate, it is clear that home buying was made possible for low-income families and workers due to the availability of FHA loan in Charlotte NC. Most of them were able to buy their dream homes because they avail of easy to apply for FHA loans.
So if you are about to purchase a house that you’ve coveted for a long time, then turn to us for we offer FHA loan in Charlotte NC. Call us today for inquiries and bookings with our agents.