Are you looking for the facts leading to homeownership? FHA loans might be the answer to helping you and your family with their low 3.5% down payment and accessible credit score requirements.
Myth 1: FHA Loans are Only for Low Credit Scores
Reality: FHA loans cater to various credit scores, not just low ones. Over 60% of borrowers have credit scores above 600.
Myth 2: FHA Loans Restrict Property Types
Reality: In addition, FHA loans cover multifamily units up to four and this is offering options beyond single-family homes. You can also consider condos or townhouses with an FHA loan.
Myth 3: Exclusively for First-Time Buyers
Reality: Moreover, both first-time and repeat buyers can benefit from FHA loans as long as the property is your primary residence.
Myth 4: W2 Required for FHA Loans
Reality: Self-employed or receiving non-employment income? You can qualify with proper documentation, including proof of various income sources.
Myth 5: Lifetime Mortgage Insurance with FHA Loans
Reality: FHA loans present both opportunities and challenges. You want the 3.5% down payment option but you don’t want to pay PMI for the duration of the loan. The moment you have at least 20% home equity in the property try this option. Refinance out of your FHA loan to a conventional loan. Voila!
Understanding your options will help tailor things to your needs. Should you have any questions, feel free to reach out to us. We’re here to assist you with all your needs because we want to see you reaching for your dreams! For more important tips for homebuyers in the Triangle area, check out this other blog post!
