Do not be afraid of FHA loans

Many borrowers are now finding the easiest path to home ownership is through an FHA Loan. First off, what is an FHA loan? The FHA loan is backed by the federal housing authority so the banks know they have some security in the loan in case the borrower defaults. FHA loan are also a little more leniant in regards to credit scores. They do require a 3% down payment and that will move to 3.5% at the beginning of the year. However, you can ask for up to 6% in concessions from the seller for closing costs, insurance costs, etc. The home must be approved by an FHA approved appraiser. In the past, they were very picky on items but that has been relaxed recently so most homes in decent condition are being approved. There are no fears in using an FHA loan in today's market and they are becoming the choice for those with a little money down and with lower credit scores. Please email me at rsandin@carolinaone.com for more info.