Looking to start your homebuying journey? You’re probably learning that there are a lot of different mortgage options – but one mortgage option you’re likely to hear about often is an FHA loan. Backed by the Federal Housing Administration, this loan is designed with first-time buyers in mind, offering more flexible qualification guidelines and a lower down-payment option, if you qualify. If you’re feeling excited (and maybe a little anxious) about taking this big step, an FHA loan might be just the tool to help you turn your homeownership dreams into reality!
Key Features of an FHA Loan
- Possible lower down-payment: FHA loans may allow for down-payments as low as 3.5% of the home’s purchase price.
- Credit score requirements: FHA loans may come with lower credit score requirements, which may be helpful for qualified first-time buyers who might not have a long history of established credit.
- First-Time Buyers: FHA loans can be tailored to those who may not meet the stricter requirements of conventional loans, providing a great entry point for qualified first-time buyers who qualify.
Things to Consider with an FHA Loan
- You may need to pay a mortgage insurance premium (MIP), which will add to your monthly payment.
- There are FHA loan limits based on your area, which may impact the price range of the homes you can consider. You can learn more about FHA loan limits, here.
The right loan will always depend on your personal financial situation and homeownership goals, but your Pulte Mortgage loan team can help you explore whether an FHA loan is the best fit for you!
