While buying your first house is an exciting experience, it can also be an incredibly taxing, especially when it comes to figuring out the financing. Even if you have worked hard to save money on a down payment, there are several other factors that are considered when determining your eligibility. And if you are beginning to feel like you cannot measure up, know that there is a solution that can help. If you are a first time home buyer in GA, an FHA loan is the perfect mortgage option to get you the approval you need so that you can purchase the property you want.
At BrightPath, we will work hard to provide you with fair and affordable financing.
What is an FHA Loan for First Time Home Buyers in GA?
Insured by the Federal Housing Administration, an FHA loan enables you to fund your home for a lower down payment compared to other types of loans. Since they are backed by the government, lenders are willing to negotiate a lower rate because they know their investment is protected even if you default on the loan. While they are not made specifically for first time home buyers, they are especially advantageous for them.
How FHA Loans Can Benefit First Time Homebuyers in GA
There are many benefits to getting an FHA loan if you are a first time home buyer in GA. In general, it is much easier to qualify for FHA loans because they have lower requirements that are easier to meet compared to other loan types. While most traditional mortgages have a higher down payment requirement of 20%, FHA loans can offer an amount as low as 3.5%. Also, if you struggle with a poor or low credit score, you are more likely to be approved for an FHA loan because the program will accept scores as low as 500.
However, it’s important to note that while an FHA loan can accept a lower credit score and require a lower down payment, this will mean you end up paying more monthly interest and may want to refinance down the road. At BrightPath, we offer many loan options to help you find the right interest rate for you.
Qualifying for an FHA Loan
While FHA loans are often the ideal mortgage solution if you are a first time home buyer in GA, there are some requirements you must meet to be eligible. While FHA loans allow for lower credit scores, to qualify for the 3.5% down payment rate, you must have a minimum FICO score of 580. If your score is any lower, then your down payment will be closer to 10%.
Lenders will also consider other factors outside of your FICO score when determining your credit worthiness. A history of overdue payments can negatively impact your eligibility, so be sure to make timely payments and handle all financial obligations before applying for an FHA loan. For any judgements related to collections, prove to your lender that they have been paid off or resolved to prevent any problems with your application.
If you have a history of bankruptcy as a first time home buyer in GA, you will not be automatically disqualified from receiving an FHA loan. However, you will need to wait at least two years after your bankruptcy filing before you can apply. During this time, do what you can to re-establish your credit so that you will look better in the eyes of your lender.
BrightPath is the Best for First Time Home Buyers in GA
At BrightPath, we understand how difficult it is to manage the financing process, especially if you are a first time home buyer in GA. As a result, we will be by your side to ensure that you get the home you want at the rates you need. With our services, your dreams are guaranteed to become a reality.
Contact us today to schedule a consultation and learn more about FHA loans.
At BrightPath, when you ask, we answer.