Many people have been told time and time again that purchasing a home is likely the single biggest purchase that they will make in their lifetime. It makes sense when you think about just how much time you spend at home and all the lasting memories that are created under one roof. Milestones and celebrations like a child’s first steps, birthday parties, holiday gatherings and even just a regular Tuesday night in front of the TV, home is truly where the heart is.
One thing that keeps many from buying a home is the misinformation that you are required to put down 20 percent of the home’s sales price to be eligible. That’s not true. Colonial offers a number of loan programs that fit the unique needs of all our customers. For first-time homebuyers, an FHA loan might be the key to help them receive finances for a home, without having to put down a large down payment. Below, we have more information regarding FHA loans and how Colonial can help guide you through the home buying process.
About FHA Loans
FHA loans are loans that are backed by the Federal Housing Administration (FHA) and offer more flexible lending requirements than many conventional loans. This makes them a popular option for those who are looking to purchase their first home. FHA loans are designed for low- to moderate-income applicants who are typically unable to make a large down payment by allowing homebuyers to borrow up to 96.5% of the value of the home. Loan amounts can vary depending on the state and county of the property, so it’s best to contact one of our talented professionals to learn more. Here are some of the highlights of the FHA loan program:
- Issued by federally qualified lenders
- Insured by the Federal Housing Administration (FHA)
- Designed for low- to moderate-income applicants who are typically unable to make large down payments
- Allow homebuyers to borrow up to 96.5% of the value of the home
- 5% down payment requirement can come from gifts or grants, making these loans popular with first-time buyers
- Loans are assumable, meaning they can be transferred to the next buyer of a home
How Colonial Can Help
Colonial is no stranger to the home loan process. Established in 1952, we have been providing home loans and superior service ever since. Colonial’s state-of-the-art website GoColonial.com was truly designed to ensure our current and potential customers have a wide-array of tools & resources right at their fingertips. Our team of skilled and knowledgeable mortgage professionals are here to work with you through every step of the loan process. To learn more about FHA loans or any of the award winning products and services we offer, contact us today at 817-390-2000.
Want to read more? Don’t miss our article on “What Does My Mortgage Cover?”
