FHA Loans Can Help Baton Rouge Consumers
As we see more people in the world having to give up their homes for one reason or another there are others who are looking for a way to purchase their first homes. Some people are hesitant because of the rising costs of gas and other items.
If you are wondering whether this is something that might be right for you this information might help you decide. When an individual is looking for an FHA loan there are some things that you should know as you are looking.
There are several buyers who may benefit from one of these loans. As examples, these are reasons why most people might consider an FHA loan:
- You’re buying a house for the first time and you aren’t sure you will qualify.
- You don’t have a large down payment or you don’t have stellar credit.
- You want to keep your monthly mortgage payment as low as you can
- You don’t have stellar credit.
You can see that an FHA loan can be a good option for a variety of people. Although you may worry about all these things there are solutions that you can receive through the loan process. Since this is a loan that is secured by the government you can receive a greater leeway than you would with other types of loans.
Usually you will have a better interest rate than other loans although this rate will be competitive. Your down payment will only be 3% and it doesn’t really matter where the money comes from. In other words, you can use a down payment that comes to your from your employer, a family member or anyone else who may want to offer you the money. In other loan programs this is not permissible.
Many lenders are eager to help people secure FHA loans because they are secured by the government. There are a variety of lenders who are open to finding a good deal for you to help you qualify. Also your credit doesn’t have to be pristine because of the way that these loans are set up. You may even be able to qualify if you have filed bankruptcy.
The nice thing about obtaining an FHA loan is that the Federal Housing Administration has been around since 1936. They have a reputation for making these types of loans to help just about anyone get into a mortgage. These loans were created to help people during the Great Depression get into a better insurance for their homes.
If you are interested in this type of loan it is a good idea to check around to see what lenders or Mortgage Brokers offer this type of financing. Typically you will find that most banks, mortgage companies or lending institutions will either offer these types of loans or help you find those who do.
It is also a good idea to check in your area to see whether there are grant programs that assist with first time buyers. Sometimes you can find grants that will partially pay for the 3% down payment.
Bill Cobb, CREA, with Accurate Valuations FHA Home Appraisal Group, has operated as a home appraiser for 16 years primarily in the Greater Baton Rouge, Louisiana market. For more information on Bill Cobb, CREA and FHA Appraisers in Baton Rouge, visit: http://www.eastbatonrougefhaappraisers.com/ .