Getting a mortgage can be a complex process. For example, you need to show proof of income, two years worth of tax returns and bank statements that verify that you have the money necessary to handle the unexpected costs that come with being a homeowner.
The good news is that you can get help with your down payment and closing costs if you need it. Eligible first-time buyers can get help through the government in the form of an FHA loan. While the government does not issue the loan, they will guarantee that the lender will be repaid if the borrower does not make all of the payments.
There are a few things that you need to know if you want a FHA loan. First, you must be a first-time buyer. Second, you need to have a down payment of at least 3.5 percent. Unlike a traditional mortgage, this money can come from any source. Finally, the price of the home must be below the limit set by your county.
FHA home mortgages can be useful products for those who wouldn’t otherwise be able to afford a home. If you are shopping for your first house, don’t forget to look at this option available to you to make owning a home a reality.