Congratulations!  Whether this be your first home, or one of many, purchasing a home is a big step in our lives. This information will help prepare you in your quest to find the best financing options available.


FHA Loans.     In the past FHA loans were primarlily used by first-time home buyers.  Today however, FHA loans are being used by home owners of all types!  Many people are under the impression that you can only use an FHA loan once but this is not the case; you can use your FHA loan benefits as many times as you would like.

Here are some of the reasons why you would want to use an FHA loan to purchase property: 

Little to NO money down is required.  Generally speaking you need to put down 3% of the sales price in order to get approved for an FHA loan.  FHA loans however, do allow you to get your down payment "gifted" to you by family members or you can even apply for down payment assistance programs if you would like. 

Federally Insured Mortgage Loan.  In a time like todays mortgage world, where you have to have lots of money down and great credit, many banks make it very difficult to get mortgages because if the home owner (you) walks away from the house and quits paying the mortgage, then the bank or mortgage company loses money.  This makes lenders much more strict when approving someone for a loan.  However, FHA insures your mortgage and thus the mortgage lender is not exposed to as much risk and therefore makes obtaining a mortgage much easier. 

NO minimum FICO or Credit score.  Most traditional mortgages have set in stone FICO score requirements.  For example in many cases if you have below a 660 Fico score then you cannot get a loan.  FHA loans however do not have any Fico requirements at all.  Each loan is looked at on an indivudual basis and an FHA underwriter will help determine your credit worthiness.  Many people with low 500 fico scores are still able to get FHA loans.

Very Low Interest Rates.  FHA loans usually have .25% to .5% lower rates than conventional loans. 

NO PREPAY Penalties.  FHA loans PROHIBIT prepay penalties of any kind!