Securing a mortgage is one of the most important steps in buying a house, and there are programs available to help all home buyers find a loan that fits their needs. FHA loans, backed by the Federal Housing Administration, are often an appealing option for first-time home buyers, shoppers in the process of rebuilding credit, and for others who may have difficulty securing a traditional mortgage.

These loans were designed specifically to help more people own homes, while also providing protection for lenders. Our REALTORS® are happy to explain the basics of FHA loans, and why they're an attractive option for home buyers.

Learn about Loans: A Guide to FHA Loans

If you're buying a house for the first time or working on repairing your credit, then finding a traditional mortgage can come with added difficulty. FHA loans are designed to make the dream of homeownership a reality for motivated buyers with lower down payments, less stringent requirements, and other key advantages:

• Lower Down Payments – One of the first things most borrowers notice about FHA loans is that the down payment required is often significantly lower than what's required for a traditional loan. In fact, an FHA loan may require a down payment as low as 3.5 percent of the home's purchase price, and top out around 10 percent. This makes it easier for young buyers and anyone without significant savings to make the down payment required to purchase a home.
  
  
• Less Stringent Credit Requirements – In addition to lower down payment requirements, FHA loans are also friendly toward people with less-than-perfect credit. So if you're working on improving your credit score after some financial difficulties, an FHA loan may be an option for purchasing a home of your own. The same is true for first-time home buyers, who may not have had the time to establish their credit before shopping for their first home.
  
  
• Backed by the FHA – The FHA loan program works because it's insured by the Federal Housing Administration, so lenders are able to offer favorable terms while still being protected in the event of a default. So it's a program that helps borrowers and lenders alike.
  
  
• Mortgage Insurance – Due to the unique nature of FHA loans, mortgage insurance is required in order to secure a loan yourself. While this is an added expense, the favorable terms of FHA loans mean that the mortgage insurance payments can still fit comfortably into a balanced budget.
  
  
• Unique Funding Situations – Some home buyers may receive financial support from family members, employers, or other sources when purchasing a home, and an FHA loan makes it easier to use unique sources of funding for your down payment. The seller can also agree to pay for closing costs, up to a certain percentage of the total loan amount.

Whether you're buying a home for the first time or working to rebuild your credit, an FHA loan may be just what you need to land a home of your own. If you have questions about your loan options, speaking with your real estate agent or financial adviser is a great place to start. You can also learn straight from the source, by visiting the extensive FHA loan resources made available by the Federal Housing Administration.

Are you looking for the right loan, the right home, and the right real estate team to lead you to your goals? Contact Wright-Patt Realty to buy and sell homes throughout the Beavercreek, OH area.