If you’d love to buy a home on Cape Cod but have very little saved for a down payment, or have had credit issues in the past, don’t give up on your dream! You may be a perfect candidate for an FHA loan.
In short, an FHA loan is a mortgage that is insured by the Federal Housing Administration. It allows you to buy a home with a 3.5% down payment and is more forgiving than conventional mortgages when it comes to blemishes on your credit report. It can be the perfect solution for first-time homebuyers, lower-income homebuyers, and/or those whose credit is not perfect.
There are some downsides to FHA loans such as limited loan amounts and mortgage insurance premiums which may be higher than with conventional loans. Your mortgage specialist can walk you through the pros and cons and help you decide if an FHA mortgage is right for you.
For more information on FHA loans or any other mortgage for that matter, contact Eric Risley at MSA Mortgage – Cape Cod. Eric lives and works on the Cape and has a solid understanding of Cape-specific issues that could arise during the processing of your loan. Also, if you’re actively looking to buy a home on Cape Cod, be sure to get pre-approved for a mortgage first. Sellers are far more likely to accept your offer if it is accompanied by a pre-approval letter. If the one you have is more than a few months old, be sure to get it updated. Eric can help you with that as well.