By Sean P. Aguirre
August 23, 2018
FHA (Federal Housing Administration) loans are mortgages designed with the goal of making homeownership more accessible and affordable than ever before. They can be used for buyers purchasing their primary homes (ie not investment properties) and are increasingly popular with Millennial buyers.
Here is how FHA loans are helping Millennials buy sooner than they thought possible –
Low Down Payment: one of the biggest factors preventing millennials from buying is saving for a down payment. With FHA, you can buy with as little as 3.5% down, so you may be ready sooner than you think. Your down payment can even come from family or close friends as gift funds.
Qualify With Higher Debt: if you are repaying student loan debt, FHA might be your solution. FHA loans will allow you to qualify for higher home prices, even considering student loan debt, compared to other types of loans. Note – no matter what home price you qualify for, be sure you’re comfortable with the monthly payment.
Imperfect Credit Is Okay: you can qualify with credit scores as low as 580. However, your credit score impacts what your interest rate will be (the lower your credit, the higher your rate and vice versa)
When choosing whether to use FHA or another loan option, be sure to consider your goals as a buyer. What is your target down payment? What is your target monthly payment? Every buyer has different needs but there are always options.
Contact me today if you would like to see which option can help you make homeownership a reality!
404 Camino del Rio S., Ste. 602
San Diego, CA 92108
P (858) 888-2124
F (855) 898-3161