Home Buying 101: FHA Mortgage
Figure out your needs
Monthly cost of owning a home
Ideal Neighborhood
Financing Your Purchase
The Conventional Mortgage
The Adjustable Rate Mortgage
Department Of Veterans Affairs Mortgage
Pre-Qualified vs Pre-Approval
Phase 2: Looking
Looking at homes
Types of homes
Single Family Homes
Town homes
Condominium
Twin Homes
Multi-Family Homes
Types of sellers
Traditional
Short Sale
Foreclosed
Researching A Home’s Public Information
Phase 3: Buying
Making an offer that counts
The Purchase Agreement
Buyer Letter to Seller
Inspections: Why get one?
Radon Testing
Sewer Line Scope Inspection
Fireplace Chimney Inspection
Mechanicals
Phase 4: Closing
Closing Costs Explained
Title Work
Appraisals
Underwriting
Utility Bills
Preparing for the Closing
The Closing
The FHA Mortgage
This mortgage is a great product for first-time home buyers, and in fact, is geared towards first-time home buyers. This is a government-backed loan that many people use to purchase their first home. This is especially true if you don’t have 20% saved up for the down payment. The down payment on an FHA loan can be 3.5%, and that money can be a gift from a close family member.
Pros:
- 3.5% minimum down payment, can be from gift funds
- Relaxed standards for credit score (compared to conventional)
- Usually a better interest rate
Cons:
- Mortgage Insurance Premium to be paid up-front, at closing
- Mortgage Insurance Premium monthly
- FHA has a minimum standard that the house has to meet, work orders may need to be rectified before closing on the house