Gina Spearman, Caliber Home Loans Atlanta are sales manager, joins Atlanta’s Best New Homes TV to explain Federal Housing Administration (FHA) loans as a home buying option.
According to Caliber Home Loans’ website, an FHA loan is partially insured by the FHA, an agency created in 1934 to help borrowers and businesses recover from the Great Depression.
“The FHA loan program is an excellent program for the first-time home buyer, but you don’t necessarily have to be a first-time home buyer,” said Spearman. “It can be a move up, second, third or later home.”
FHA loans are for-purchase transactions, owner occupied. Buyers may finance a single-family home, two-to-four unit property, modular home, condominium or a Planned Unit Development (PUD) property.
The minimum down payment is only 3.5 percent, making this a great, low down payment option and the down payment can actually come as an all gift from a family member, so the buyer is not responsible for coming up with all of it. Down payment assisted grants are also an option.
Both fixed-rate and adjustable-rate mortgages (ARMs) are offered with FHA loans, but the minimum credit score accepted is 580 with a fixed rate.
Spearman reminds viewers that anytime you’re putting less than 20 percent down on a home, mortgage insurance is typically required like with Caliber Home Loans. Click here for more information about homeowners insurance.
Caliber Home Loans offers a variety of loan options to ensure that your new home is as affordable as it could be. For more information, call 404-449-4515 or visit CaliberHomeLoans.com. Let Caliber guide you home!