FHA loans are have been on the rise in recent years, due in part to an increase in awareness and a real estate market which can be definitively described as buyer-friendly. If youíre one of the many potential homebuyers considering an FHA loan, here are a few tips to get the most out of the experience.
- Get Pre-Approved. The first step in your search for a new house should be to call a lender, not your real estate agent. Getting pre-approved for a loan gives you a better idea of your housing budget and makes you a much more compelling buyer when youíre ready to make an offer on a particular property.
- Do the Research. Before you begin your house hunt, be sure that you investigate the current FHA maximum loan value in your area. Since these amounts vary widely based on the cost of living in your area, be sure you know exactly how much your areaís maximum is.
- Take Advantage of the FHA Programís Amenities. Part of the reason the FHA program is so popular is that it offers a low down payment option (3% of the purchase price rather than the traditional 20%) and the ability to roll closing costs into the loan. If youíre feeling short on cash, consider using these options to your full advantage and walking away from closing with a little more cash than youíd have with a traditional program.
For more information on the benefits of an FHA loan, please visit www.fha.gov
