FHA Loans Make Homeownership More Attainable
Did you know first-time buyers who financed their home typically financed 93 percent* of their home in 2020? Many of these new homeowners obtained financing backed by the Federal Housing Administration (FHA), a US federal government agency.
An FHA loan facilitates homeownership for the credit challenged, those with a smaller down payment or not able to qualify for conventional financing. Many first-time homeowners choose FHA. Here is why:d upfront mortgage and monthly mortgage insurance payments (MIP). A smaller down payment increases the risk for the lender which requires MIP to charge a fee for mortgage insurance. MIP will stay on the loan for the life of the loan. Upon achieving 20% equity in the home, many borrowers refinance to eliminate PMI.
Premia is an FHA, Approved Lending Institution, and is not acting on behalf of or at the direction of HUD/FHA or any federal government agency.
* National Association of REALTORS® | 2020 PROFILE OF HOME BUYERS AND SELLERS, November 2020
An FHA loan facilitates homeownership for the credit challenged, those with a smaller down payment or not able to qualify for conventional financing. Many first-time homeowners choose FHA. Here is why:
- Down payments as low as 3.5%**
- Fee limits on closing costs
- More lenient underwriting requirements
- Credit scores as low as 620 depending on your down payment
Premia is an FHA, Approved Lending Institution, and is not acting on behalf of or at the direction of HUD/FHA or any federal government agency.
* National Association of REALTORS® | 2020 PROFILE OF HOME BUYERS AND SELLERS, November 2020