Anyone Can Apply For an FHA Loan

There are many misconceptions about FHA loans. Many people think FHA loans are only for first time homebuyers....this is not true. You do not have to be a first time homebuyer to obtain an FHA loan. In fact, you can own multiple other properties and get an FHA loan. However, you can only have one FHA loan at a time and FHA loans are only for primary residences. You cannot get a FHA loan on an investment property or a second home.

Here are some other general highlights and myths about FHA loans:

• FHA loans have as good or sometimes better interest rates than conventional loans.
• FHA loans are generally more flexible with borrowers with credit challenges or bad or poor credit.
• FHA has a great program to fixer upper houses called the FHA 203k loan where you will get the funds to purchase and fix the house all in one loan.
• FHA has a great energy efficient program called the EEM where you will get the funds to upgrade your home to be more energy efficient.
• FHA loans are not just for smaller loan amounts, you can get an FHA loan all the way up to $729,750 for a condominium or single- family home, $934,200 for a 2 unit, $1,129,250 for a 3 unit and $1,403,400 for a 4 unit. Loan amounts vary per county, so call me to check on your county limit.
• FHA loans work for owner-occupied 2-4 unit properties.
• FHA loans allow a gift for 100% of the down payment.
• FHA loans allow non-occupant co-borrowers to assist in qualifying.