The Federal Housing Administration (FHA) loan is a great option for borrowers without a large amount saved for a down payment.
What is it?
The FHA Loans in Clarksville TN has helped grow homeownership rates in large cities and for minorities since its inception in 1934. It is designed for low-to-moderate-income borrowers. Often this loan program is used by first-time homebuyers or those who have not had an opportunity to build their credit or savings for a down payment. FHA Loans in Clarksville TN.
While the FHA loan is commonly used by first-time homebuyers, it is not strictly for first-time buyers and can be used for any home purchase as long as the qualifications are met. It is important to note that this loan is only an option for a primary residence and won’t work for investment properties or second homes, like vacation homes.
Why is it different from other mortgages?
This loan is not funded by FHA but instead is funded by your mortgage lender and insured by Federal Housing Administration (FHA). In order to secure the guarantee of FHA, qualified borrowers are required to purchase mortgage insurance— and premium payments are made to FHA. So your mortgage lender takes on less of a risk since FHA will pay a claim if you default on the mortgage.
There are specific types of FHA loans that your lender can go over with you if you decide an FHA loan is right for you. While deciding what type of FHA loan works for you, it’s also important to note certain limits on FHA loan, namely how high of price they are willing to cover.
Common types of FHA Loans:
Fixed Rate Loans
Adjustable Rate Mortgages
FHA 203 Loans
FHA Jumbo Loan
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