Achieve the Dream of Owning a Home with an FHA Loan
The Federal Housing Administration released a new home financing option in 1934 to help more Americans achieve the dream of owning a home. These FHA loans are a nonconventional mortgage option that have flexible terms and low down payments. They also have easy qualification so even clients with less-than-great credit may be eligible. Dick Lee Mortgage is a trusted mortgage partner serving Newton, Needham, Boston, Framingham, and nearby Massachusetts. Contact us to schedule a consultation about an FHA loan today.
The Origins of FHA Loans
FHA loans originated during the Great Depression to encourage private lenders to offer mortgages to a wider array of clients. FHA loans, sometimes called FHA mortgages or FHA insured loans, are insured through the FHA, a division of the U.S. Department of Housing and Urban Development. Although this government agency insures them, they are entirely funded through private lenders like Dick Lee Mortgage.
The Basics of FHA Loans
FHA mortgages and other loans insured through a government agency are known as non-conventional loans. Other types of non-conventional loans include VA loans (through the U.S. Department of Veterans Affairs) and USDA loans (through the U.S. Department of Agriculture).
If an FHA borrower defaults on a loan, the government repays the loan to the private lender. Because of this extra level of security, our company can approve a broader range of clients for home financing. FHA loans are available to clients with lower credit scores and a smaller down payment than conventional mortgages.
If you qualify for an FHA loan through Dick Lee Mortgage, you can secure a down payment with as low as 3.5% with a credit score of 580 or higher, and a down payment of 10% with a 500-579 score. Fixed and variable rates are available with terms up to 30 years. Clients must be able to maintain mortgage payments and insurance.
Properties Eligible for FHA Loans
FHA loans can be used to purchase many types of properties. The home must pass an inspection to ensure that it is structurally sound. This type of loan can be used for single-family homes, 1-4-unit properties in which one unit is occupied by the borrower, and certain approved condos and manufactured (trailer) homes.
In addition to a straightforward FHA loan, FHA 203(k) loans are available for people who would like to repair, improve, or upgrade a home. If you would like to make repairs to a home you currently own or would like to purchase, FHA 203(k) is a great option to consider.
Exploring Your Options is Easy and Free
If an FHA loan sounds like it may be the right fit for you and your family, schedule an appointment with Dick Lee Mortgage. Our qualified mortgage professionals will help you compare and contrast FHA mortgages with any other conventional and non-conventional financing choices that could work for you. We work with clients in Newton, Needham, Boston, Framingham, and surrounding cities.