FHA Loans

Federal Housing Authority (FHA) loans offer a variety of pros and cons. Since FHA loans are government backed, they typically require a lower down payment than other types of loans. They also offer lower mortgage insurance rates, better interest rates, and are available to people with higher debt ratios. Although there are many benefits of the FHA loan, there are also some drawbacks, including the fact that you must have Private Mortgage Insurance (PMI) for the life of the loan and that the condition of a home can prevent you from using the loan to purchase it.

The FHA203k loan is another option that costs a bit more but allows the buyer to finance home improvements or remodeling.

The Tim Sova Team can help you find a lender to help you get pre-approved. If you have questions about FHA loans, or want more information about our real estate services, contact us now.