When I bought my first home 10 years ago, it was an FHA (Federal Housing Administration) loan that made the dream possible. Among other advantages, it allowed me to purchase with just 3% down, instead of the usual (at that time) 10%. In the past few years, lenders loosened their purse strings such that FHA loans became unnecessary. Now the pendulum has swung back the other way and FHA loans are once again providing intended relief to new buyers.
By way of a refresher, the FHA is not a lender itself. It is a government program which guarantees conventional loans, thereby removing some of the risk for the actual lender. This encourages banks to loan money to individuals who might not otherwise qualify to borrow.
Currently, FHA loans allow many homebuyers to purchase a home up to $585,000 with zero down by taking advantage of down payment assistance programs such as Nehemiah and Ameridream.
Contact the lender of your choice for complete details and to find out if an FHA loan is a good option for you. If you need recommendations regarding lenders, give me a call and I will give you the names and phone numbers of several local, reputable loan officers.
Single adults face unique challenges when buying and selling a home. I know because I've done it myself, & a significant portion of my clients are single. This blog provides news & information you need to help you achieve your real estate goals. Alice Kuder, REALTOR®, Green. Prudential Northwest Realty Associates, Seattle, WA
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