FHA Mortgage in Jacksonville May Start the End of The Current Real Estate Dip
What is the FHA?
FHA stands for the Federal Housing Administration. The FHA actually doesn't make the loan but insures the loan to the lender who is loaning the money. Since the lender is being insured against loosing their money they are able to offer FHA borrowers easier qualifying terms and lower down payment requirements.
Low Down Payment
As a FHA Borrower you can work with as little as 3% down. What is great is this 3% can come as a "gift" from family, non-profit charities and even an employer.
Don't Have Great Credit? That's OK
The purpose of the FHA is to increase housing ownership. So often borrowers who can't qualify for a conventional loan can qualify for a FHA loan.
Your FHA Loan Can Be Assumed By the Next Buyer
You buyer can assume your loan (with qualification) when you put your home on the market in the future. Rates are at a historical low, so if rates creep up in the future then this could be a real selling point! You may sell your home quicker or for more money because your next buyer can afford to buy your home at a lower mortgage payment than any others on the market.
FHA Loans Have More Protection If You Get Behind
FHA allows borrowers to work with their lenders in special programs such as loan workouts, mortgage counseling and special forbearance. So you have more housing protection then if you went with a conventional loan.
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