What Are FHA Loans?

HomeBlogWhat Are FHA Loans?

If you have been considering buying a home recently, you may have started doing research on mortgage options and come across FHA loans. FHA loans, or Federal Housing Administration loans, are mortgage loans that are backed by the government rather than private banks. These types of loans were specifically designed to put homeownership within reach for those who may not qualify for other types of mortgage loans. First-time home buyers or those with lower credit scores can benefit from FHA loans.

What Are FHA Loans?

There are many benefits to FHA loans. One of the biggest perks is that they require a lower down payment, something that is helpful for those who don’t have a large nest egg to invest. Some FHA loans require only 3.5% down, a much smaller amount than other options. For people who struggle to save up for a more substantial down payment, having this option can be the difference between being able to purchase a home or not.

Another inviting aspect of FHA loans is the flexibility with credit scores. Understanding that there may be some blemishes to your credit score, FHA loans are available to make owning a home more attainable in these situations. Being turned away from other lenders doesn’t automatically disqualify you for an FHA loan, so looking at all options is your best bet. Additionally, FHA loans often allow a higher debt-to-income ratio, allowing you to secure a home loan if you have existing debt, such as student loans or a previous credit card balance.

At Harbor Mortgage Company, our expert loan consultants are here to help you understand FHA loans for your home purchase in the Savannah, Georgia area. We understand the intricacies that are involved in such a large purchase and securing a home loan, which is why we will walk you through every step of the way and find the best solution for your specific situation. If you are ready to be a homeowner and want to discuss your options, give us a call. We look forward to helping you secure the home you’ve been dreaming about!

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