New Home Loan Shopping: The FHA Program

Gil Mackey
LoanBiz Columnist

Article Rating , 4 out of 5 based on 1 votes

You have plenty of options for your California home loan, and sometimes it can get confusing. What is the FHA new home loan, and why might it be better than other mortgage types?

The FHA New Home Loan
If you've heard that the FHA program is only for inexpensive homes, or that the home must meet certain standards, or that you need to meet a minimum credit score--throw those misconceptions away. They're all wrong! The FHA new home loan offers California homebuyers some significant advantages over other California home loan types, including:
  • Flexible credit standards: it's possible to qualify even if you have no credit history, or if you have filed for bankruptcy.
  • You don't need a huge down payment: you can qualify with as a little as 3%.
  • Competitive interest rates
  • The FHA has refinance options to help you stay in your home, should times get tight.
Talk With Your Mortgage Lender
Explore with your mortgage lender whether an FHA loan might be right for you. There are limits on how much can financed through an FHA new home loan, and in some California markets it simply won't be the right solution. Your mortgage lender will be able to go over the details with you, answer your questions, and help you determine whether an FHA mortgage is the right new home loan for you.

Mortgage Shopping: Always Compare
The FHA doesn't write the loan or set the rate for your new home loan--the mortgage lender does. So even if you decide you want an FHA loan, shop around and compare rates with several lenders to get the best deal you can on your new California home loan.

About the Author
Gil Mackey has been a writer and artist for the past twenty years. In addition to freelance writing, he writes for his local paper, and lives with his two children in Nevada.

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