Brian Cushing of The Cushing Team at Guild Mortgage in Reno is back today with another video. This time, he’s covering FHA loan basics in about 90 seconds. Watch the video below to understand the basics of FHA loans, or scroll down to read the transcript.
FHA Loan Basics
“I’m here today to talk about FHA financing. You may have heard me talking about conventional loans before. And for the majority of homebuyers, conventional loans might be the best. There’s a huge number of first-time buyers and even move-up homebuyers who utilize the benefits of an FHA mortgage. So what does that mean – FHA? That’s the Federal Housing Administration. FHA mortgages are sponsored by the U.S. government and insured by the Federal Housing Administration, making it easier for buyers to obtain a home loan with as little as 3.5% down payment. So you’re not going to get dinged for having a lower credit score.
When you’re trying to finance your first home, sometimes it’s hard to qualify all by yourself. You can also use the FHA loan program with a non-occupying co-borrower. A parent, a guardian, a family member – someone close to you who backs you and knows you’re going to be good for this investment in real estate can help you co-sign for your mortgage with an FHA loan.
In summary, FHA loans provide some of the most flexible guidelines, allowing lower credit scores, non-occupying co-borrowers, and 100% gift funds as a source of down payment.
We’ve talked about conventional loans in the past and those are going to be more costly if you have a lower credit score. So FHA really is the most forgiving of all the loan programs. MIllions of people have financed their very first home with FHA financing. If you want to know how, give us a call today.”