FHA Loans Provide Affordable Financing for Many Buyers

Owning a home is every American’s dream. Unfortunately, not everyone can afford the typical loan that is needed to achieve this goal. In some situations, however, there are ways to quality for one of the available FHA loans and still be able to afford the home that you want.

Finding the right kind of financing is the key to helping more and more people own a home of their own. Whether you are a first time home buying or you are looking for the third home in a long line of houses that you have bought, the kind of financing that you secure plays a major role in the overall price that you will need to pay. In both small towns and in large cities, there are mortgages available that can help many buyers make the home purchases that they want.

Finding the Right Home Is the Dream of Many Americans

With the use of FHA loans, there are many people who can get the financing that they need to purchase their first house. To qualify for an FHA loan for a home mortgage it is required to have a down payment as low as 3.5%, and the borrower needs a credit score of 580 or higher. Those with credit scores between 500 and 579, however, must make down payments of at least 10%.

Consider some of these facts and figures about the home mortgage industry and the impact that it has on the nation’s economy:

  • Approximately 35% of home buyers are also first-time buyers, according to the 2016 National Association of Realtors Profile of Home Buyers and Sellers.
  • 59% of home owners wish they understood the terms and details of their mortgage better, according to data collected in September of 2016.
  • Among those who financed their home purchase, buyers typically financed 90% of the home price, according to the 2016 National Association of REALTORS Profile of Home Buyers and Sellers survey.
  • 59% of all buyers used conventional loans to finance their home, according to the 2017 Home Buyer and Seller Generational Trends report.
  • Although the cost of living has gone up 30% in that time period, the data from 2016 shows that household income has grown by 28% in the past 13 years.
  • As of the spring in 2017, 9.26 million people said they either owned or lived in a household that owned a second home in the U.S.

Finding the right home may be the dream of many, but the nightmare sometimes arrives when it comes to the financing. Fortunately, with FHA loans there are many people who are finally able to afford their very first home.

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