First-Time Homebuyer Advice for FHA Mortgages
April 12, 2023
What must you know as a first-time home buyer considering your FHA loan options? There are several areas to know about as you plan and save for your mortgage.
FHA Loan Options: Build or Buy
You do not have to feel limited to existing construction properties when using an FHA mortgage. The FHA Single-Family Home Loan program includes a One-Time Close Construction Loan program.
This option can help you build a home on your own lot with the same low down payment options as with FHA loans for existing homes.
FHA Loan Options: Buy a Fixer-Upper
The FHA 203(k) Rehabilitation Loan program lets qualifying borrowers purchase and renovate a home. Is the house you want not quite up to local building code?
Does it need repairs and corrections to become compliant with local regulations? Buying such a home with a standard FHA purchase loan may be more difficult, depending on circumstances, than buying a fixer-upper with a rehab loan.
Keep in mind that the fixer-upper you buy must, as a condition of FHA loan approval, be brought into compliance with FHA minimum standards as well as state/local building codes.
FHA Loan Options: Buy a Condo or Manufactured Home
Some people mistakenly assume a condo is out of reach with an FHA mortgage, but this is untrue. Some want to buy a manufactured home or a mobile home; this is also possible with an FHA mortgage.
Remember that the type of FHA mortgage you need for a mobile home is not the same as for a condo loan; each loan option has its own requirements and guidelines.
FHA Loan Options: Multi-Unit Properties
Some first-time buyers have financial goals that include becoming a landlord. This is possible with an FHA loan for residential real estate with as many as four living units.
Occupancy is required so you must live in at least one of the units to comply with the FHA occupancy rule, but you are free to rent out the unused living areas.
FHA loans for multi-unit properties can also be good if you are expecting a change in family size. You won’t want to buy a home you quickly grow out of; buying a property, you can grow into over time makes sense if you can realistically afford the mortgage for the larger home.
Speak to a participating FHA loan officer today to discuss your mortgage options for any of the above. Not all FHA lenders offer all FHA mortgage products, so be sure to ask about the availability of the specific type of mortgage you seek.
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RELATED VIDEOS:
Don't Skip the Home Inspection
Bigger is Better With a Jumbo Loan
Insuring Mortgages With the FHA Funding Fee
FHA Loan Options: Build or Buy
You do not have to feel limited to existing construction properties when using an FHA mortgage. The FHA Single-Family Home Loan program includes a One-Time Close Construction Loan program.
This option can help you build a home on your own lot with the same low down payment options as with FHA loans for existing homes.
FHA Loan Options: Buy a Fixer-Upper
The FHA 203(k) Rehabilitation Loan program lets qualifying borrowers purchase and renovate a home. Is the house you want not quite up to local building code?
Does it need repairs and corrections to become compliant with local regulations? Buying such a home with a standard FHA purchase loan may be more difficult, depending on circumstances, than buying a fixer-upper with a rehab loan.
Keep in mind that the fixer-upper you buy must, as a condition of FHA loan approval, be brought into compliance with FHA minimum standards as well as state/local building codes.
FHA Loan Options: Buy a Condo or Manufactured Home
Some people mistakenly assume a condo is out of reach with an FHA mortgage, but this is untrue. Some want to buy a manufactured home or a mobile home; this is also possible with an FHA mortgage.
Remember that the type of FHA mortgage you need for a mobile home is not the same as for a condo loan; each loan option has its own requirements and guidelines.
FHA Loan Options: Multi-Unit Properties
Some first-time buyers have financial goals that include becoming a landlord. This is possible with an FHA loan for residential real estate with as many as four living units.
Occupancy is required so you must live in at least one of the units to comply with the FHA occupancy rule, but you are free to rent out the unused living areas.
FHA loans for multi-unit properties can also be good if you are expecting a change in family size. You won’t want to buy a home you quickly grow out of; buying a property, you can grow into over time makes sense if you can realistically afford the mortgage for the larger home.
Speak to a participating FHA loan officer today to discuss your mortgage options for any of the above. Not all FHA lenders offer all FHA mortgage products, so be sure to ask about the availability of the specific type of mortgage you seek.
------------------------------
RELATED VIDEOS:
Don't Skip the Home Inspection
Bigger is Better With a Jumbo Loan
Insuring Mortgages With the FHA Funding Fee
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