If you have been considering utilizing an FHA Loan in the Seattle/Renton/Tacoma areas, then you aren’t alone.
According to a recent report by the Wall Street Journal, more and more Americans are utilizing down payment assistance programs such as FHA Loans. In fact, the report indicates that the amount of down payment assistance programs used doubled between the years of 2013 and 2016.
Around 13 percent of those who obtained an FHA Loan during the first quarter of this year received assistance from the government. That number increased from 8.6 percent during the same time period five years ago.
If you aren’t sure about how FHA Loans work, let’s take a minute to break them down.
FHA Loans are backed by the Federal Housing Administration, which makes it easier for lenders to extend more lenient qualifying requirements. The benefits of these loans include:
- Down payments as low as 3.5 percent*
- Credit score requirements of 600 and above
- Requirements for debt-to-income ratios lower than other loan programs
- Gift funds can be used
- Can be used for adjustable and fixed rates
- You can refinance with an FHA Loan
As you can see based on the above benefits, these loans have been specifically designed to help first-time home buyers who may otherwise experience barriers to qualifying for a home loan.
If you have any questions about obtaining an FHA Loan, make sure to contact us to speak to a mortgage consultant.
*Qualifying factors may apply