Are you curious about getting an FHA loan to buy in Alpharetta or anywhere in the Greater Atlanta area? If you’re a first-time buyer, or even if you’re not and you want a competitive loan program that requires a low down payment, then you might want to consider taking a closer look at the FHA mortgage program. First introduced back in 1934 as a way to help stabilize and promote the housing industry to a wider audience, this program can be an excellent choice if a low down loan is on your radar.
Perhaps the most popular feature of an FHA loan is the low down payment needed. Today, the minimum down payment for an FHA loan is just 3.5% of the sales price. This low down payment is one of the reasons why first-timers flock to this program. Further, FHA loans are also a bit easier to qualify for compared to other low down payment options.
Lenders also like the FHA loan program because there is an inherent loan guarantee that goes along with it. This guarantee is made to the mortgage company, it’s not a guarantee the applicants will get approved. Instead, the guarantee is in the favor of the lender should the loan ever go into default. If it did, and it’s relatively rare that one does, the lender is compensated for the loss. This guarantee is financed with two separate mortgage insurance premiums. An upfront premium that is rolled into the loan amount and an annual premium paid in monthly installments.
FHA loans can only be found at mortgage lenders who are approved by the Federal Housing Administration. This means you can apply directly with us for an FHA mortgage. If you’re looking for a home loan that needs just a small down payment, with competitive rates and easier qualifying, the FHA program is likely your perfect choice!