Key Facts About Georgia FHA Loans: FHA loans are mortgages that are issued by approved lenders and backed by the Federal Housing Administration. This program is unique in the way that the borrowers can still purchase a home in Georgia with only 3.5% down payment. FHA loans do require mortgage insurance costs, but this ensures that the lenders’ investment remains secure in case of a default. The mortgage insurance also allows lenders to offer loans at very competitive rates of interest and more flexible requirements of qualification. This makes the FHA loan a excellent home financing choice for first time buyers in Atlanta, Macon, Columbus, Savannah, with limited down payment.
Below are some key facts about the Federal Housing Administration’s loan program and why it is a better choice than more traditional loan sources.
- Perfect credit is not required
Home buyers can finance up to 96.5% with down to a 620 credit score. A few small credit mistakes doesn’t automatically disqualify a borrower.
- Down payments can come from several sources
Sources of money other than the borrower’s personal savings can be used to make down payments. These include gifts of cash from a family member or grants from a down payment assistance program.
- Closing costs assistance is possible
Home sellers, lenders and builders are allowed by the FHA to pay closing costs for the borrower. Loan estimates being offered by other lenders can be compared by the borrowers to find out the most viable option.
- Lenders are always FHA approved and monitored
The FHA itself does not make loans. Rather they are provided by approved lenders, banks and brokers. These lenders are constantly monitored by the FHA, which works in an insurance capacity, protecting both the lender and the borrower.
- Services, underwriting standards and costs vary
It is important for the borrowers to look around for the best costs, services and standards as they might vary among mortgage brokers or lenders. Even on the exact same loan, not all lenders approved by the FHA offer the same costs and interest rates.
- FHA mortgage insurance
All FHA approved loans require two mortgage insurance premiums. An upfront premium (paid one time) of 1.75 percent of the total loan amount and an annual premium paid monthly. Both can vary depending on the length of a loan and the initial loan-to-value ratio. The upfront premium, which can be financed as a part of the total loan amount, has to be paid at the time of the receiving of the loan. The annual premium is paid on a monthly basis. Read more FHA details here.
- Loan approval is quick
The entire loan application and pre approval process can be completed in under 30 minutes. Borrowers that have questions can call ph: 800-743-7556 or submit the Info Request Form on this page.
FHA Mortgage Source serves all of the U.S including Georgia including: Atlanta, Augusta, Columbus, Savannah, Athens, Sandy Springs, Macon, Roswell, Albany, Johns Creek, Warner Robins, Alpharetta, Marietta, Valdosta, Smyrna, Tifton, Thomasville GA
GA home buyers in more rural locations should also take a minute and check into the USDA Loan here.