First Time Home Buyer Loans with FHA

Home buying with a first time home buyer loan process can be a difficult, but FHA offers new home loans that were specially designed for 1st time home buyers. Did you know that FHA has been the leader in first time home buyer loan programs for several generations? FHA loan requirements are easy to understand if you work with the right FHA lender. The FHA Home Loan Company has a team dedicated to FHA first time home buyer loans, so you don't have to worry. Our job is to help people understand the FHA guidelines so there are no surprises when they apply for a first time home loan that is insured by the Federal Housing Administration. With the first time home buyers program, borrowers with less than perfect credit still have the opportunity to finance a home at an affordable interest rate. The first time home loan application volume continues to rise, so request a pre-approval letter and make sure that you work with a lender that you can trust to close your loan in a timely manner. FHA commits to offering affordable home loans for first time home buyers.

The Federal Housing Administration continues to approve first time home loans when the borrower has at least a 500 fico score. People with all types of credit may qualify for home mortgages with strong compensating factors. If we are unable to approve you for a first time home loan with FHA we will refer you to a bad credit mortgage lender for alternative home finance programs.

Common Questions from First-Time Home Buyers – HUD
Let’s look at some of the common first time home loan questions people have about HUD and FHA.

1) Can I Get An FHA Loan Even If I Have A Low Credit Score?
Yes! FHA loans are intended to help people who have had challenging credit situations in the past. The minimum credit score to secure a first time home mortgage under today’s rules is 500. That is very attainable, even if you have had a bankruptcy.

2) Can I Get An FHA Loan Even If I Don’t Have Much To Contribute To Down Payment?
Yes! When you pursue an first time home buyer loan from HUD, you qualify for a very low down payment. In many cases, you only need to contribute 3.5% of the home’s value in the down payment, which is a small fraction of the amount that you might be responsible for otherwise.

3) Can My Relatives Contribute To My Down Payment?
Yes! Under the rules of FHA loans, your relatives can “gift” a sum toward your down payment. This sum can even cover the entire down payment. You can also seek other types of help, such as assistance programs in your state or local area or gifts from friends or employers.

4) Can I Get An FHA Loan If I Don’t Have Money On Hand to Pay Closing Costs?
Closing costs account for items such as a home appraisal and other items that help to establish the value of the house, as well as necessary paperwork. Under FHA, the cost of these items may be rolled into your financed amount, so you would not pay up front.

5) Is FHA A Lender? Do I Get My Loan Directly From FHA?
FHA is not a lender. It is an insurance fund with federal backing. Rather than getting loans from FHA, you choose an FHA-approved lender. The lender is reimbursed by FHA in the event you are unable to repay, so the risk to lending company is very low.

FHA insures amazing first time house buyer loans with low down payment and low credit score requirements. Thanks to their benefits, FHA can help you purchase your dream home!

Finance a House with a First Time Home Loan Insured by FHA.

The Federal Housing Administration continues to extend new opportunities with great purchase mortgage options for new homebuyers. Consider FHA, because government first time home buying loans offer a unique opportunity to establish credit while minimizing your housing expenses.

Does the FHA Offer a No Money Down Loan like the VA? Not at this time, but the Federal Housing Administration continues to reach out to first time homebuyers as they only require a 3.5% down-payment for eligible borrowers. Check with state specific guidelines for down-payment assistance on first time home buying loans insured by the FHA.