I want to buy a house. FHA Loans, how does that work? I have been reading into it but stilll confuse...?

Question

I want to buy a house. FHA Loans, how does that work? I have been reading into it but stilll confuse...?

Answer 1

Basically, FHA is easier to qualify for right now, many bigger lenders, bank of america, wells, Citi have lost money, their tightening underwriting requirements and to be blunt, just don't want to lend too much.  Fha is government backed, meaning the gov't will buy the loan.  Fha thus will allow a late payment or two and is much more liberal with credit scores, there are also first time home buyer programs available.  Here's what you want to look for

1.  A realtor that will take the time to walk you through the process and help you understand everything in simple terms

2.  Get pre-qualified.  Pre-approved doesn't mean that much, find a mortgage professional that will get your loan started and pre-underwritten so you know where you stand

3.  Know your situation.  Can you put down 20%?  How much can you afford?  How are your income taxes?  The 20% question pertains to your down payment, if you can put down 20%, you don't have to pay mortgage insurance (the lenders protection against you defaulting), plus, this gives you instant equity in your home.  The afford question does relate to being prequalified, but if you can afford more, look at your terms, maybe pay it off in 20 yrs instead of 30 and save thousands in finance charges.  Taxes, lowest rate is not everything.  Yes that sounds crazy, but if your paying uncle sam right now buying a home will help that, you can write off the interest paid every year on the mortgage.  Also, if you do have to pay mortgage insurance, you can write that off as well.  If your not good at saving money, maybe a 1/4-1/2 pt higher rate is an option to explore.  This will get you a bigger payment from uncle sam, and more money in your pocket, maybe you put a double payment every year and knock off a year or two total.  If your doing well on taxes, the reverse is true, get a low rate to limit your tax burden.  Also take into consideration family, do you have children, are you planning to?  What is your goal of home ownership?  Retirement?  Make sure you have a plan before you meet with your mortgage professional, they should be able to customize a mortgage solution to meet your goals and dreams, hope this helps and feel free to ask questions

Answer 2

go to the bank if you want morgage

Answer 3

Dear friend i  have so many options for you to select from my website. please visit it.

http://real-estate-informations.blogspot...

Thank you