An FHA loan may be a good option for first-time homebuyers. For qualified buyers there is a lower down payment option and potentially a lower interest rate than other types of loans. You may be able to finance up to 96.5% of your home loan purchase. This loan provides you with a fixed payment and fixed interest rate. You can also choose an Adjustable Rate Mortgage (ARM) option that will give you a lower starting rate, but will adjust after an initial term and then annually thereafter. Contact us today to see if a government-insured FHA loan is the right option for you.
An FHA loan is a great option for first-time homebuyers as the income and credit requirements are typically less rigorous than a conventional mortgage. Borrowers purchasing their first homes are generally younger and may have student loan and other debts to contend with. This makes the FHA loan's low down payment requirement ideal. When it's time to close, Sellers are permitted to cover up to 6% of closing costs, which could mean less out-of-pocket expenses for new homeowners that might not have additional funds.
Considering refinancing? If you're a current FHA borrower, the FHA Streamline Refinance program is a great choice for you. With its limited documentation requirements and the opportunity to refinance without the cost of an appraisal, it's a great option for lowering your interest rate or cashing in on your home's equity.
Why Choose a FHA Mortgage?
-Loan down payments
-Finance up to 96.5% on some loans
-Sellers can contribute up to 6% of the purchase price
-Can finance up to $472,030 (varies by county)
-Fixed rate and ARM options available
Normal credit and underwriting approval is required. Monthly Mortgage Insurance (MIP) and upfront Mortgage Insurance Premiums apply.
Credit Do's and Don'ts to Keep in Mind
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Hey, I gave my Realtor a $5,000 earnest money deposit check...Where does that money go?
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Uwharrie Bank is committed to helping customers in our community achieve successful homeownership. We have many programs designed to provide solutions to first time homebuyers, including many affordable housing options.
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