Your finances don’t have to be perfect to buy a home.
Do you have bad credit? Does a 20% down payment seem unreachable? Don’t let those concerns hold you back from buying a home.
FHA Loans are a great option for home buyers in situations like this
How does FHA
Federal debts, such as tax liens and student loans, must be paid on time. Judgments must be paid in full prior to closing but minor collection accounts do not need to be paid in full.
FHA loans have maximum loan limits.FHA limits the amount you can borrow based on the type and location of the property. Max loan amounts vary by county. For a list of limits per state and county click here. The FHA updates its loan limits each year.
You’ll have to pay a mortgage insurance premium (MIP).
You pay it every month, and it's likely you can never cancel it - at least not until you pay off the FHA loan. But you can refinance your FHA Loan into a conventional loan down the road. See how to do that here.