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FHA Home Buyer Programs

By B Wood
Oct 17th, 2013

fha home buyer programsThe FHA insured over $130 billion dollars in loans this year. That means that millions of homeowners throughout America were able to purchase or refinance their home using an FHA loan. FHA approved lenders are able to use FHA loans for people to purchase, refinance, or obtain a streamline refinance. The FHA does not actually issue a loan. They insure loans. That means they guarantee that if you default on your mortgage they will pay part of the balance to the lender, minimizing the overall risk of giving a loan to Americans. The model has worked, and people throughout the country have been able to realize the dream of homeownership.

What many people don’t know is that the FHA offers additional assistance to borrowers beyond insuring mortgage loans.

Other Ways the FHA Assists Homeowners

Housing Counselors – They are available to discuss loan options and explain the process to you. Working with an FHA approved lender they can help identify how much you qualify for.

FHA Home Buying Programs – The FHA works with government and non profit agencies throughout the country to offer assistance to first time home buyers. In California this program include a voucher program where the housing authority can help people buy their first home. If you are currently receiving money for rent from the housing authority this could be converted into a mortgage payment.

Information – One of the big challenges with buying a home for the first time is understanding the process. It can feel overwhelming but having the facts makes the process easier and it will go more smoothly. The FHA has educational information available to help borrowers learn about the mortgage and home buying process.

Good Neighbor Next Door Program – The FHA has a program that incentivizes teachers, law enforcement, firefighters, and emergency responders to live in revitalization neighborhoods. They offer up to 50% off the list price of the home. That means if someone found a home in a revitalization neighborhood that HUD is selling for $300,000, they would only have to pay $150,000. The caveat is the borrower needs to live in the property for a minimum of 36 months, without renting it out. The FHA makes the borrower sign an interest free, second mortgage note, for the amount of the discount. Once they have lived in the home for three years that the loan is forgiven.

Rehabilitation Loans – The FHA has loan programs that allow borrowers to purchase a home and fix it up. Speak with your FHA approved mortgage lender for more details.

Low Down Payments – The FHA offers low down payment options with as little as 3% down.

The FHA has helped millions of homeowners purchase a home. In order to take advantage of the many FHA loan programs, speak with an FHA loan lender. They can go over your options and identify if you would qualify for any of these special programs. Even if you aren’t eligible for things like the Good Neighbor Next Door you will have the opportunity to secure a mortgage with as little as 3% down. Interest rates are low so call today!