There is a federal program that makes home loans more readily accessible and affordable. It is especially attractive to first-time homebuyers. An FHA (Federal Housing Administration) Loan is a mortgage that is secured by the Federal Housing Administration. FHA-approved lenders are insured by the U.S. government in order to reduce the risk to lenders in the event of a default. There are three basic advantages to buyers who can qualify for an FHA loan:
- Only a low down payment is required
- You do not need perfect credit
- Your loan can be assumed by another buyer
The one negative with an FHA loan is the need for mortgage insurance premiums. An FHA loan house will also need to meet certain requirements and be appraised by an appraiser that is on an FHA-approved list. Stop by one of our offices in Sacramento, Roseville, or throughout northern California and let us help you determine if you qualify for an FHA loan.
The information above is not guaranteed to be accurate and does not represent the opinions of Guild Mortgage Company.