Is an FHA Loan for Me?
A Federal Housing Administration (FHA) loan offers help to those that may not meet the requirements for a conventional home loan. The FHA loan allows the borrower to post a much lower down payment for their home. Instead of the typical 20% down, an FHA loan only requires 3.5% of the purchase price as a down payment. To qualify for this, you must have a credit score of 580 or higher. If you have between a 500-579 credit score you can qualify for a 10% down payment.
To qualify for an FHA loan, you must live in the property you are purchasing and it needs to be considered your primary residence for at least 1 year. A common misconception about FHA loans are that they only work for first time home buyers. This is not true. You are only permitted to have one outstanding FHA mortgage at a time, though. An FHA loan can be a great way for someone with little money saved to purchase a home, when otherwise they may have to wait many years before they saved up the down payment.
FHA Home Inspection
To be considered for an FHA loan The Department of Housing and Urban Development (HUD) requires an appraisal to determine the market value of the home. HUD also needs a property inspection that will show the home meets the minimum standards that are required by law.
Though it is not completely required, your best option is to get an FHA inspection. This will take care of the requirements for your FHA loan and give you additional information as to the condition of every aspect of your home purchase. This way you can feel confident that you are making a good decision before signing off on a 15-30-year loan.
If you are in the Tampa area you should contact a Beryl FHA Certified Home Inspector to take care of your inspection needs. Beryl will inspect: structural components, exterior, roofing, plumbing, electrical, air conditioning and much more. You will then receive a detailed report breaking down all the areas of your home. A Beryl representative will always be there to answer any questions that you may have. Give Beryl a call today – 813-616-3301 – to help give yourself the peace of mind you deserve.
