When you want to buy a home in Lake City, you have several options when it comes to financing – and one of those options may be a Federal Housing Administration loan. These loans, commonly called FHA loans, can help low- and moderate-income buyers get a mortgage and buy a house. But could an FHA loan help you become a homeowner?
Here’s what to know about these government-backed loans.
Could an FHA Loan Help You Become a Homeowner?
FHA loans are backed by the U.S. government, which means they allow lenders to offer potentially more favorable terms. That’s because the U.S. government guarantees that the lender won’t be left out in the cold if the borrower fails to make mortgage payments.
You can get an FHA loan with as little as 3.5 percent down. That means on a $100,000 loan, your down payment could be as low as $3,500.
Most of these loans are fixed-rate mortgages that last 15 or 30 years, but your lender may have some freedom to work with you on the specific loan product you choose.
What About Credit Scores With an FHA Loan?
You don’t need an amazing credit score to qualify for an FHA loan and become a homeowner. In fact, lenders can approve people who have credit scores of 580 for these types of loans.
How Do You Get an FHA Loan?
When you talk to a lender, let them know you’re interested in an FHA loan. The mortgage officer you talk to will most likely be able to explain your options and tell you what’s available.
Are You Buying a Home or Land for Sale in Lake City?
If you’re moving to Lake City, we can help you find the perfect place to live. Call us at 386-243-0124 to tell us what you want from your home and we will begin searching right away.
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