Buy a house with as low as 3.5% downpayment using an FHA Loan
How much downpayment do you need to buy a house? You only need as low as 3.5% down payment to buy a home using an FHA loan.
FHA Loan requires a minimal down payment program and it is one of the lowest down payment loan options available for many first time homebuyers (and non-first time buyers). The other lower down payment loan options are Fannie Mae Loan which now just requires a 3% down payment and other loans that allow for down payment assistance programs.
For example, if you are thinking of buying a $300,000 single family/condo/town home in San Diego County, then you are looking at $10,500 (3.50% of $300,000) as a down payment.
What is the monthly payment on a house? The monthly payments on a house includes the principal, interest, property taxes, and home insurance. FHA loans also require an additional mortgage insurance premium (recently lowered in 2015) paid monthly.
What houses can you buy in San Diego County?
- San Diego County Homes For Sale $500,000 and below
- San Diego County Homes For Sale $400,000 and below
- San Diego County Homes For Sale $300,000 and below
Why are FHA Loans popular among home buyers?
Low Down Payment: As already mentioned, FHA loans allow you to buy a home with a low 3.5% downpayment.
Easier to Qualify: Because FHA insures your mortgage, lenders may be more willing to give you loan terms that make it easier for you to qualify.
Less than Perfect Credit: You don’t have to have a perfect credit score to get an FHA mortgage. In fact, even if you have had credit problems, such as a bankruptcy, it’s easier for you to qualify for an FHA loan than a conventional loan.
100% Loan Gifts: Money can come from a family member, employer or charitable organization as a gift. Other loan programs don’t allow this.
Costs Less: FHA loans have competitive interest rates because the Federal government insures the loans. Always compare an FHA loan with other loan types.
All Co-borrowers income and debt are used to qualify (including non-occupants)
Non-Occupant co-borrowers allowed
FHA does not provide direct financing nor does it set the interest rates on the mortgages it insures.
Our advice: For the best interest rate and terms on a mortgage, you should compare mortgages from several different reputable lenders. In order to initiate the loan application process, please contact an FHA approved lender below.
What type of properties or homes are eligible for an FHA loan?
An FHA insured mortgage may be used to purchase or refinance a new or existing 1-4 family home, a condominium unit or a manufactured housing unit (provided the manufactured housing unit is on a permanent foundation).
HUD’s internet site can provide additional information on FHA mortgages by going to: www.hud.gov/buying/index.cfm
There are also many local and State government programs available that use HUD and/or non-HUD funds to provide grants for the downpayment or to help pay closing costs. To find out what programs are available in your area visit www.hud.gov/buying/localbuying.cfm If you would like to see a short webcast video about the homebuying process, visit the following web site: www.hud.gov/webcasts/archives/buying.cfm.
Can you purchase a condo with an FHA loan?
Are you looking to buy a condo using FHA financing, see if the condo you are buying is FHA financing eligible. Click FHA condo lookup here, enter zipcode and browse all FHA approved condominium communities for that zipcode. https://entp.hud.gov/idapp/html/condlook.cfm
Find out if you qualify for an FHA Loan
An FHA loan could be the right solution for you in buying your home. For more information on how to obtain an FHA loan pre-approval and the next steps in buying a home, please call us at 760-798-9024 or get connected to our preferred lender below.