FHA Mortgage loans are often a perfect for Bloomfield first time home buyers. One of the great benefits of an FHA loan is that they are very flexible in their approval criteria which allows for an easier qualification process than other mortgage loan programs for Bloomfield first time home buyers.
The Federal Housing Administration was created in 1934 and became a part of Department of Housing and Urban Development in 1965. It has helped increase the home ownership rate in the United States of America to almost 70%. It is a Federal program that does not cost the American taxpayer. All costs of the insurance are paid for by borrowers who obtain FHA mortgage loans.
Benefits to a Bloomfield First Time Home Buyer in using an FHA Loan to buy a home
Low Down Payment and Closing Costs - Bloomfield First Time Home Buyers often lack 20% of their purchase price for a down payment. FHA allows for less money to come out of your pocket.
- Just 3.5% of Sales Price is required for down payment
- You can get a gift from a family member for all of your down payment and closing costs
- The seller can give you a credit of a maximum of 3% of the sales price towards your closing costs. This option can greatly reduce the total amount of money a Bloomfield first time home buyer needs to purchase a home.
Easier Credit Qualifying Guidelines - FHA understands that all buyers do not have perfect credit. They may have had life just get in the way in the past. A Bloomfield First Time Home Buyer will need to demonstrate that they have things under control now. Here are some of the understanding guidelines from FHA:
- A credit score of at least 620. If you don't know your credit score, Bloomfield first time home buyers should check out How To Request Your Credit Report right now!
- You can qualify for an FHA mortgage in as little as 2 years after your Chapter 7 Bankruptcy Discharge, and while you are in Chapter 13 as long as you making your payments on time, and the trustee gives you permission
- You can qualify to get an FHA loan in as little as 3 years after a foreclosure.
Additional Features of FHA Loan Programs
- You can also buy a multi-family property that has up to 4 units if you plan to live in one of the units. You can use some of the rental income from the other units to help you qualify for the payments on the loan.
- There are special loan programs available if you are: a teacher, a law enforcement officer, or buying a home that needs home improvements (read this post on rehab loans).
If you are a Bloomfield First Time Home Buyer, these are exciting times. You have lots of questions; let me help you to answer them. Where do you start? Call me at 860-306-8029.
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As quoted in the New York Times "A Little-Known Loan Program", and in the Hartford Courant "Moving In:Couple Combining Households Buys In Newington" and "Moving In... New Britain"