- The Federal Housing Administration offers a couple home loan programs that can make owning a home easier for more people. At Perennial Mortgage Group, Sponsored by NTFN, Inc we have helped many of our clients in Raleigh and the rest of North Carolina uses these FHA programs to purchase their dream homes. The two FHA programs that we specialize in are the FHA loan and the FHA 203K loan, both have similarities and differences.
What makes these FHA loan programs attractive is that they can give more people who want to purchase a home that opportunity. With conventional home loan programs the down payment is typically around 20%, which can be for some people a difficult amount to be able to save up.
Where the FHA loan programs help, is that they have a much lower down payment requirement. With both the FHA loan and the FHA 203K that down payment is just 3.5%.
Also the financial standards with these FHA programs are also not as strict compared to conventional loans. Where with conventional loans in most cases you need near perfect credit, which is not the case with these FHA loans. You will still need to have a decent credit score, but you don’t have to worry about it being perfect. With those two factors it really opens the door for more people to be able to purchase home.
Where the FHA loan and the FHA 203K differ, is that with the FHA 203K loan has the option to tie in money to help repair a home that would need it. That is why the FHA 203K is also known a rehab loan. There are many homes out there that could be a great deal, but there is something that is damaged that makes it less attractive. For example the roof is damaged, or the kitchen is in poor shape. These homes could be in great neighborhoods and at low prices however not many people are willing to purchase a home and then start repairing the home.
With the FHA 203K the costs of the repairs are tied into the loan, usually at a lower interest rate then what someone would pay if they tried to finance the repairs separately? This way you can find a great deal and basically create your dream home.
To get started and to see what you could afford with either of these FHA programs just use our website’sPurchase Assistant for a free rate quote.