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What is an FHA Loan?The Federal Housing Administration (FHA) is a government agency started inthe 1930s that insures mortgage loans made by approved lenders. Because repayment of FHA loans is insured by the federal government, mortgage lenders can more confidently provide these loans, making home buying available tomore people. FHA loans provide several advantagesfor first-time homebuyers as well asa unique set of qualifications for thepurchaser and the property.

All products are not available in all states. All options are not available on all programs. All programs are subject to borrower and property qualifications. Rates, terms and conditions are subject to change without notice.

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FHA Advantages – Down PaymentAnother common obstacle in the home buying process is saving enough cash for the down payment. Conventional loans usually require a down payment of 10-20% of the total home purchase price. For a $200,000 home, for example, buyers would need $20,000-$40,000 in cash to make the purchase. FHA loans make saving for thedown payment much less daunting. FHA loans generally require just 3.5%down payment. In the case of$200,000 home, that translatesto just $7000. And the moneymay give to you by a familymember, employer or charitableorganization as a gift.

All products are not available in all states. All options are not available on all programs. All programs are subject to borrower and property qualifications. Rates, terms and conditions are subject to change without notice.

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FHA Advantages – Mortgage InsuranceMortgage insurance is a requirement for all borrowers until they have a certain level of equity in their home. It helps protect lenders when home buyers fail to repay their loans. Mortgage insurance fees are paid in addition to the principleand interest on the loan amount. Mortgage insurance costs forFHA loans are generally less thanthose for conventional loans,which could mean a lower overall monthly mortgage payment.

All products are not available in all states. All options are not available on all programs. All programs are subject to borrower and property qualifications. Rates, terms and conditions are subject to change without notice.

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FHA Advantages - AssumabilityWhile you’re certainly excited to purchase your new home – and to enjoy all the benefits that come with it – it’s always wise to look ahead to the future. Odds are you won’t live in your home all the way through the 15- or 30-year length of most mortgage loans. When you sell your home, FHA loans provide a unique advantage called “assumability.” Homes previously purchased withFHA loans are especially attractiveto some buyers because the loanis assumable. That means the newbuyer may be allowed to take over(or “assume”) the conditions of theFHA loan, reducing closing costsand potentially providing a lower interest rate.

All products are not available in all states. All options are not available on all programs. All programs are subject to borrower and property qualifications. Rates, terms and conditions are subject to change without notice.

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FHA Requirements – You The FHA sets standard requirements for borrowers, but individual lenders may require additional information or qualifications. Borrowers have to provide their Social Security number, proof of legal U.S. residency and confirm there are no unsatisfied government debts, such as unpaid taxes or delinquent student. The Latest FHA Requirements can be found at FHA.gov

All products are not available in all states. All options are not available on all programs. All programs are subject to borrower and property qualifications. Rates, terms and conditions are subject to change without notice.

State Licensing Information.

FHA Requirements – The Property Just like the homebuyer, the property to be purchased has to meet certain criteria to qualify for an FHA loan. An FHA-qualified appraiser will review the home to make sure it meets quality standards. There are also limits on the home value depending on where you live. Still, in some areas, this could be $700,000 or more. Another important point to keepin mind is that the property mustbe your primary residence to be eligible for an FHA loan. FHA loans cannot be used to purchase vacation homes or investment property.

All products are not available in all states. All options are not available on all programs. All programs are subject to borrower and property qualifications. Rates, terms and conditions are subject to change without notice.

State Licensing Information.

FHA Loan Factsfor First-time Homebuyers

If you’re in the market for anFHA home loan, contact us today…

www.NewAmericanFunding.com

All products are not available in all states. All options are not available on all programs. All programs are subject to borrower and property qualifications. Rates, terms and conditions are subject to change without notice.

State Licensing Information.All products are not available in all states. All options are not available on all programs. All programs are subject to borrower and property qualifications. Rates, terms and conditions are subject to change without notice.