FHA Loans are an excellent loan program for buyers who don’t have a lot of money to put down or need an option with more lenient credit and income qualifications. In 2021 we saw an increase in the FHA loan amount to $356,362 (varies by county) and now in 2022 we are seeing yet another HUGE increase to $420,680. What does this mean for a home buyer? Essentially a client purchasing a home of $435,000 could put as little as 3.5% down. Additionally that is a buyer who might have a credit score as low as 600 and/or higher debt-to-income ratios. Please note that every client is different and this is not a guarantee of loan approval.
FHA loans are one of the oldest government backed mortgage programs. It was created with the intent of increasing home ownership by the passage of the National Housing Act of 1934. Since then it has become one of the big four of loan types in the United States (Conventional, VA, USDA being the other three). With this recent increase in loan limits it will continue it’s mission of expanding home ownership opportunities in the US for many families. If you would like to learn more about the FHA mortgage loan program please call or text 910-250-8888.
As always, if you have questions about mortgage guidelines, terms or rates please call/text me at 910-250-8888. I proudly serve the Wilmington, Leland, Hampstead, Jacksonville, Southport areas and am licensed in all of North & South Carolina and Virginia!
apply online: www.JoeyMilam.com