FHA (Federal Housing Administration) Loans

FHA Tennessee

Basics of a Federal Housing Administration (FHA) Loan in Tennessee

FHA loans have become more and more popular within the past couple of years. Not only are First Time Home Buyers using these loans for buying a new home but some people are using it to refinance to a lower interest rate as well. Will an FHA Loan benefit you? Lets talk about it in more detail.

FHA for buying a home.

Federal Housing Administration (FHA) mortgage lenders furnish new home loans with down payments as small as 3.5% compared to 5% downpayment for a conventional loan. That’s an particularly attractive characteristic with someone with a limited downpayment. FHA will also allow a family member to contribute to the downpayment or closing cost on your new home. If you are a First Time Home Buyer, I can show you how to use the $8,000 Federal Tax credit for downpayment. You can either pay back a family member or I can show you how to get a second mortgage for your downpayment. You can repay this loan back or your family when you receive your Tax Credit. One last thing, a seller can contribute to your closing of up to 6% of the sales price of the home. You can see how by using a FHA loan how one could possibly have very little out of pocket cost for a new home. Call me to for more details.

FHA for a refinance.

There are a many benefits of using an FHA loan for a refinance. I will talk about two of them. One, most conventional lenders will not allow you refinance for over 80% of the value of your home. FHA will allow you refinance up to 95% of the value of your home. This will allow you to consolidate a 1st and 2nd mortgage. Maybe get a lower interest rate. Or simply use a refinance to pay off debt. The biggest benefits of these loans are the credit requirements. Not only will they work with someone who has less than perfect credit, if enough time has passed, they will finance someone who has had a bankruptcy or foreclosure.

As you can see, with a Federal Housing Administration loan you can have many benefits. To learn more about what a FHA loan can do for you, call me now at 615-942-2210. You can also fill out a pre-qualification worksheet to see how much you qualify for. I look forward to helping you make your dream of homeownership a reality!