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What Is FHA Financing?
You may have heard the
term FHA used before, but did you know that FHA financing is one
of the most popular ways to achieve homeownership today? In
fact, it's easier for more people to purchase their first home
with the help of FHA financing than any conventional loan
program in America. As specialists in the field of FHA
financing, American United encourages you to examine the facts.
FHA vs. Conventional
Financing
Although there are many
similarities between FHA and conventional loan programs, there
are some big differences as well. The major difference is that
FHA allows for borrowers with less than perfect credit to
receive a loan approval that otherwise might not qualify under
conventional credit guidelines. And contrary to what you may
have heard, FHA interest rates are just as competitive as
conventional loan programs.
In addition to relaxed
credit guidelines, FHA down payment requirements are
substantially less than conventional loan programs. While most
banks require at least a 5% down payment on single family homes
and 10% to 25% down payment on multifamily homes, FHA requires
as little as 2.25% to 3% down on a 1-4 family home. And by
combining grant assistance through American United, FHA
homebuyers can purchase a home with as little as a 1% down
payment (see grant assistance above). FHA also allows the
entire down payment to be gifted from a family member while
conventional loan programs do not allow for gifts for the
initial 5% down payment. Conventional loans include programs
through savings banks and organizations such as Fannie Mae and
Freddie Mac.
The FHA was enacted by
the federal government to stimulate affordable housing
nationwide. As a FHA Approved Lending Institution, American
United has helped thousands of homebuyers achieve homeownership
utilizing the opportunities provided by HUD and FHA.
How Do I Find Out if I
Qualify for FHA Financing?
Qualifying for FHA
financing through American United is easy. Simply fill out our
on-line application and within 24 hours
an American United FHA specialist will contact you with the
results. If you have any questions, feel free to e-mail us at
info@americanunited.com |
