As a potential home buyer, you may or may not understand the benefits of an FHA mortgage loan. Using an FHA loan to purchase a St. Augustine property is a good idea for many reasons. With lower interest rates than most conventional loans, less strict qualification guidelines, and down payment grant programs available to those who qualify, FHA mortgage loans can even make home ownership possible for those with less than perfect credit or for buyers with limited or no money for a down payment. If you dream of owning a home, it is possible that an FHA loan is the right choice for you.
What Is An FHA Loan?
An FHA mortgage loan is a loan which is insured by the FHA, or Federal Housing Authority. These loans are issued through private lenders based on a set of standards provided by the FHA. The FHA helps borrowers get approved for financing by insuring the lender against taking the loss in the event of foreclosure. Each state has a lending limit, which means buyers can only borrow up to a certain amount. FHA mortgage loans require a much lower down payment than a conventional mortgage loan – usually between three to five percent of the home’s sale price.
How To Get An FHA Mortgage Loan
It is easy to obtain an FHA loan. Speak to your bank or preferred lender to find out if they originate FHA loans. Alternatively, you can ask a mortgage broker for a referral to an FHA approved lender. Once you decide on a lender, the rest is quite simple. You will complete a loan application and get pre-approved for a specific amount. After this is done, you are free to begin searching all the great St. Augustine homes for sale.
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