FHA loans are not just for first time home buyers.

Really!?! Yes really... and that's a GREAT thing for EVERYONE! At one point in my life, I too had the misconception that these three little letters represented a loan that only first time home-buyers could use and only one-time. Boy was I wrong. My eyes were opened wide when I learned what the loan type actually represented. 'FHA' stands for Federal Housing Administration. It is a government backed sector that approves lenders who can offer FHA loans. This loan type has lower requirements for income and down payment (3.5% of the purchase price) than traditional loan types which makes home buying an option for those who are light on cash or just getting their credit established.

Why finance a home?

• Regular on-time mortgage payments give a tremendous boost to credit scores.
• Being qualified to obtain a mortgage represents lender confidence in your repayment capability.
• Paying a mortgage shows your ability to repay debt and gain equity in your asset.

Are there are drawbacks?

• Borrowers may only have 1 outstanding FHA loan at a time.
• Less down payment means higher monthly payment.
• Mortgage Insurance is required. 
• Maximum loan caps  that vary by state and county.

In summary, if you're looking to start gaining equity but don't have the cash on hand to do so, consider an FHA loan. Most financial institutions have the capability of providing their clients with an approval for FHA loans. Call me today if you're thinking about buying a home and would like more information on the process. Happy to help and I hope you learned something!

Stefanie Crothers 570-951-6724

~Information gathered from personal experience/research and not deemed to be perfect.