FHA Home Loans

Published by julia | Filed under Buyer / Seller Tips, Market Trends, Miscellaneous, Pinellas County Homes, Real Estate

These loans are offered by FHA approved lenders in your area. Their big advantage over privately-branded loans is the low minimum down payment, which is only 3.5 percent of the contract sales price, far below the 20-percent down required by most other lenders. You can also roll your closing costs into your total home loan amount.

HUD $100 Down Payment

You can buy any home listed as available for FHA financing under this program as long as you will occupy the home. HUD will pay up to 3 percent of the sales price to cover your closing costs and up to 5 percent to cover the sales commission. If you buy a HUD home, your savings would even be greater.

FHA 203(k) Loans

These loans are for homes that need several thousand dollars worth of repairs or improvements, as identified by your FHA appraiser or certified home inspector. You can borrow up to $35,000 and roll this amount into your total loan. These loans can also be used for fixer uppers and handyman specials. Only owner-occupant buyers and nonprofits, however, can avail of these loans.

Good Neighbor Next Door

If you are a firefighter, emergency medical technician, law enforcement officer or a pre-kindergarten through 12th-grade teacher, HUD will help you buy your home from among the single-family HUD homes listed for this program in your state. HUD will give you a 50-percent discount, and if you use a FHA loan, you can also avail of the $100 down payment incentive.
What is great about this program is you can sell your house after living in it for three years and then keep your equity or any price appreciation.

VA and USDA Loans

VA loans require no down payment and entail lower closing costs, but these are only for members of the military. Similarly, USDA loans feature zero down, but they are offered only for homes located in rural areas.

Fannie Mae and Freddie Mac Home Loans

These two agencies offer various purchase and refinancing schemes, such as energy efficiency retrofit financing and mortgage rate reduction.

State and County Housing Assistance Loans

Several states and counties have programs that provide closing cost and down payment assistance. Some are plain grants; others are low-cost or zero-interest loans.

Helpful and Up-to-Date Realtors

These are just an overview of these programs. The best thing is you know you have great options. Just choose a helpful, friendly and well-informed realtor, and he or she will