A Federal Housing Administration (FHA) loan is a type of mortgage loan that is often more accessible than non-insured mortgages. Paulette Dystant has worked in the mortgage industry for nearly 20 years. She always strives to provide her clients with the best services possible. If you are considering an FHA loan, there are several things you should know before you begin your application.
When it comes to a mortgage, there is always a down payment. For non-FHA loans, the amount of that payment is often dependent on many different factors. When it comes to FHA loans, most borrowers pay a down payment of 3.5 percent of the purchase price. This is often significantly lower than other types of mortgages.
Closings costs can be a major cost when it comes to purchasing a home. If you have applied for, and received an FHA loan, then the closing costs can be covered by the sellers, builders, or lenders without any change in the interest rate. Other types of mortgages may charge a higher interest rate if they agree to cover the closing costs in the mortgage.
The most important thing you should know about getting an FHA loan, is that your mortgage needs to be FHA approve. The FHA is not a lender, but an insurer. Therefore, it is important that you go through a lender that is FHA approved. There are many different FHA approved lenders, so you should take your time to compare your different options. Paulette Dystant has been a mortgage loan originator for many years and is able to offer her clients great information.
Source: http://www.bankrate.com/finance/mortgages/7-crucial-facts-about-fha-loans-8.aspx
Paulette Dystant 