If you're looking for a home and need a loan, you've probably been told you should get a pre-approval or pre-qualification letter. But your home financing could still fall through and you could end up without the home of your dreams. How could this happen and what can you do…
First times can be thrilling and terrifying all at once. Your first time home alone, your first time driving alone, your first day of college or a new job, your first kiss, your first time … you get the point.
Your first time buying a home is definitely no exception. You’ll finally have your own place with your own rules. You don’t have to be quiet for the people upstairs or downstairs (or be kept up by their noise), you can decorate and landscape exactly how you want, you have more space and more privacy, you (hopefully) now have a garage and, best of all, you can run around in your own backyard in your underwear… well, maybe.
Anyways, at Quicken Loans, we know how exciting and scary buying your first home can be, so we organized a First-Time Home Buyer Q&A Google Hangout to answer a lot of questions you might have as you go through the process.
This is one of the many great tools Quicken Loans offers to make your home purchase even easier. Another one is our Mortgage First program. Instead of the traditional preapproval, Mortgage First completely underwrites your loan, pending property qualification. Having your loan ready to go when you’re house hunting gives you a great edge in the competitive real estate market.
Watch the video now!
What Is an FHA Mortgage?
In this Q&A segment, someone asks about the advantages of an FHA mortgage. If you’re not familiar with an FHA mortgage, it’s a mortgage that’s insured by the Federal Housing Administration and has less strict qualification guidelines for the homeowner.
What Are the Benefits of an FHA Mortgage?
Julie Shaffer, director of the FHA Philadelphia Homeownership Center, explains that one of the biggest benefits is the down payment required: only 3.5% of the loan’s value. And, you can use money gifted to you from a friend, family member or employer, or a grant to make the down payment.
The FHA, Shaffer says, also allows non-occupying co-borrowers on the loan, so your parents or someone else can cosign your mortgage to help you get started.
Mike Berris, a Quicken Loans director of relocation mortgage banking, says another reason an FHA mortgage is so flexible is because it has relaxed credit requirements so it’s easier to get a loan with a somewhat lower credit score than usual.
Keep in mind, of course, that individual lenders often have their own guidelines in addition to the FHA’s regulations, so you’ll want to check to see exactly how your lender provides FHA mortgages.
Now that you’ve got a better understanding of FHA mortgages, we hope your first-time home buying experience will be all excitement and no stress.
If you still have some questions about FHA loans, Mortgage First, or anything else relating to your home, let us know in the comments!
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