FHA loans are an attractive option, especially for first-time homeowners in Idaho and Washington because it is insured by the Federal Housing Administration (FHA). Primarily, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments. Typically the borrower can be approved with 3.5% down vs 20% that is required on other loan programs.
What is an FHA Loan?
An FHA Loan is provided by the Federal Housing Administration and has a lower down payment. FHA Loans have more flexible requirements than a traditional conventional mortgage.
Benefits of FHA Loans
There are many benefits to FHA Loans beyond just a lower down payment.
Credit scores as low as 580
Less stringent Qualifications and Credit requirements
Gift Funds are Allowed
Seller Paid Closing Costs are Allowed up to 6% of the Sales Price
Eligible homes are Single & Multi-Family, Manufactured, and Condo
Can only be used for as an Owner Occupied home
Little more Flexible on Debt to Income Ratios
FHA Loan Limits
Different counties have different limits on how much you can borrow for an FHA Loan. For example, Kootenai and Spokane County are currently at a $294,515 max loan amount.
Get Pre-Approved for an FHA Loan
If you are looking to buy a home in Idaho or Washington, contact Team Sabrina Homes Loans at (208) 277-8627 for more information or contact us here!