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Matthew Kaman's Blog

By Matthew Kaman | Agent in Hamden, CT

Can you afford your new house?

When looking for affordable home financing the first and best choice for many borrowers is FHA financing.  This is available on most single family residences and can make the difference between renting and actually being able to purchase a home.  The FHA, or Federal Housing Administration, does not actually lend any money.  You can think of the FHA as an insurance the banks use to guarantee the loans.  The bank will lend, to you the homeowner, but the FHA insures the total amount will be paid to the lender.  This means that while you apply for that FHA mortgage, the process is structured around the FHA requirements. The down payments are much easier to afford, typically 2-3% and the money can even be a "gift" versus actual money held by the borrower. This makes owning your own home come into reality for many families who would otherwise look at it from the sidewalk. 

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