FHA Loans: Gaining Popularity
Working as a real estate broker with Integrity Residential Brokerage, I've noticed a significant increase inÂ buyers utilizing FHA loans.Â FHA LoansÂ are mortgages issued by lenders and insured by the Federal Housing Administration (FHA). This federal government insuranceÂ gives lenders some assuranceÂ that they will be repaid if the borrower defaults.Â
Even with the popularity of FHA loans, many buyers do not understand the potential benefits of these loans.Â Below, are some frequently asked questions about FHA Loans.
Are FHA Loans Only For Low Income Borrowers?Â The good news is FHA loans are available to everyone. There are no income restrictions.Â SimilarÂ to most mortgage options,Â borrowers will need to supply proper documentation for income and assets which assures the lender that the borrower will beÂ able to afford the home.
Are FHA Loans OnlyÂ For First Time Buyers?Â You could be a first time buyer orÂ buying your 10th home, anyone who would like to apply for a FHA loan is able to do so.Â
Aren't FHA Loans Just For Small Loans?Â Â Recently, the government raised the maximum loan amount from its original cap of $362,790 to $793,750 in hopes that it willÂ help stabilize the housing market. The amount a buyer can borrow might vary county to county, so check with a qualified lender in your area. Â
Are FHA LoansÂ More Affordable Than Conventional Loans?Â While interest rates are comparable to other loan options, one of the greatest benefits of aÂ FHA loan is that the downpayment could be as low as 3.5%.Â
Are FHA Loans Assumable? Yes!Â FHA loans are assumable. While the initial attraction of a FHA Loan might be the low downpayment, the potential to transfer the loan and it's terms (interest rate) to a buyer might make the property more desirable and possibly increase the value, especially if interest rates rise.
If you're considering a home purchase, speak with your lender about the possible benefits of a FHA Loan!
Integrity Residential Brokerage, licensed in both Massachusetts and New Hampshire, would be happy to assist you in your home buying orÂ home selling needs. If you, or anyone you know, is considering buying or selling a property, Integrity Residential Brokerage located in Pepperell, MA, would love to hear from you!Â We strive to offer you the highest level of professional assistance possible making your desires and goals a reality.
If you'd like to search for property currently on the market,Â click on the link below.Â You'll have access to every property currently listed in Massachusetts as well as New Hampshire.
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Catherine Condon, Broker MA & NH
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