The first home someone buys is usually one of the most memorable moments in one’s life. It’s that moment in life that make all the hard work and stress gloriously worth it and now you have something to show for it. So how do you get to this wonderful moment? You get a loan.
Generally speaking, first time home buyers are more often times faced with credit issues as they have never had a loan of this magnitude on their credit reports. As a result, your credit may not be established enough to qualify you for some of the other types of loans available to home buyers. Perhaps you may have some negative credit strikes against you from your youth and it is holding you back from getting the perfect loan deal? Or you may have perfect credit but not so much money socked away for the down payment of your new house as you would have liked. This is where the FHA loan comes into play.
The FHA loan provides leniency in many areas that other mortgage loan types will not. FHA loans are perfect options for first time home buyers. They make great provisions for credit re-builders young couples stating a family or anyone else in the world for that matter! Let’s face it, buying a house is expensive and it comes with a tremendous amount of financial responsibility and that is why the FHA loan is offered.
If you are interested in buying northwest Arkansas real estate, or that perfect dream home for sale in Fayetteville, you need to understand your options. Here we take our first step towards becoming a home owner. We educate ourselves!
First off let’s go over what an FHA loan is.
FHA MORTGAGE LOANS:
Governed by HUD, the Department of Urban Housing, the FHA (Federal Housing Authority) is a mortgage loan which insures 1-4 unit primary residential mortgages.
Now let’s go over what you need to qualify for a FHA loan.
Traditional Arkansas FHA Mortgage Requirements:
*3.5% down payment can be a gift from family or paid by employer and may other sources
*Minimum Credit Score 600
*Maximum loan amount in Arkansas is $271,050 for 1 unit dwelling
Lastly let’s look at some of the notable facts regarding FHA loans in Arkansas.
Notes About The Benefits of the FHA Mortgage Loan:
*Higher Debt to Ratio Allowance
*Some of the highest Seller Paid Closing Cost allowed, up to 6% paid by Seller.
*Lenient credit requirements
*Minimal down payment
*FHA often waves the down payment requirement in eligible disaster areas.
* One the best low down payment mortgages on the market to date, still.
*Until June 3, 2013 the MI Payment is included in the loan for only a min of 5 years or until the LTV of the loan is at 80%. (NOTE: This is going to change on June 3rd and after that date, the Mortgage interest Payment will be included in the loan payment for the entirety of the loan. )
Now is the time to buy folks! If you are looking to beat this deadline of June 3rd, and want to own your own home in beautiful Northwest Arkansas, let’s get this ball rolling.
As a dedicated Arkansas Buyer’s Agent, it is one of my main responsibilities to protect and educate the home buyer in real estate transactions. It is my most important responsibility and one that I take very seriously. I am always available to answer any questions you may have and please don’t hesitate to Contact Me.
I hope this information brings light into your week Arkansas! Have a good one!
-Steve Atwell –