For an average adult who has spent a considerable number of years building good credit and saving enough to start home, nothing can be as exciting as finally approaching a bank or mortgage lender, turning in the requirements, closing the deal, and holding the key to one’s dream home.
If you are one of these adults right now and you have more than enough stashed away for your dream home, you probably know the feeling, and if you’ve been talking about your plans to friends and colleagues, chances are you had a few offers from private mortgage lenders. The truth is, getting a home loan is not as easy as it is exciting. The process can take some time, a lot of paperwork, and tons of patience. However, you cannot let any of this stand in your way of getting your dream home. Regardless of your credit or the amount of money you saved, an FHA home loan remains worthy of consideration and could even be the key to getting your dream home.
FHA Home Loan Basics
So what is an FHA mortgage and could it be the key to getting your dream home? While FHA home loans are primarily designed to serve the needs of low- to moderate-income home buyers, anyone can apply and take advantage of the many benefits it offers. It is a type of home mortgage insured by the Federal Housing Administration, and as such, private lenders can accommodate borrowers with less than average credit and little money for a down payment.
As an example, to qualify for an FHA loan a borrower only has to put 3.5% down instead of 20% in traditional mortgage loans and have a credit score of about 580 compared to 640 or higher with conventional home loans. You may have that 20% right now, but if you can easily qualify for an FHA loan and can afford the monthly payments then maybe you will have better use for the rest of the money you saved for a down payment.
Things to Consider
With that, an FHA loan is, without a doubt, the easiest way for anyone to acquire the home of their dreams. If you think you are able to meet the credit requirement, the down payment, and the required monthly income to get an FHA mortgage, there is one more thing you need to be thinking about before finally approaching a mortgage lender and this is the home’s location vis a vis your plans for the next 10 or 15 years.
If you see yourself working with the same company you’re with right now for the next 15 years, then it would make sense for you to get a property nearby. Another thing to consider is the size of the home and the yard, which is very important if you are planning to start a family and have children very soon. It would also be a good idea to choose a home located near schools, health care facilities, shopping districts, and business centers for your convenience and peace of mind.
The Next Step
With the number of good FHA-approved mortgage lenders nowadays, your dream home is always within your reach. Take some time shopping for the best FHA lender near you and discuss your needs.