Hello from TeamCarruth!!We hope everyone is doing well! Our hearts go out to those that have lost loved ones during this time. We pray that all of this is coming to an end and we can get back
FHA Home Loans
Dated: March 16 2020
Hello from TeamCarruth!!
We hope everyone is staying well!!
While the market has slowed due to the COVID-19 Virus, closings are happening everyday! If you are thinking of selling your home, it's still a good time to do that.
Let's discuss different types of home loans. An FHA loan is a mortgage issued by an FHA approved lender and is insured by the Federal Housing Authority. Your mortgage lender will use the term "private mortgage insurance" or "PMI". The FHA doesn't insure your loan freely, you pay for it! This insurance is financed into your mortgage.
The usual down payment is 3.5% of the purchase price. On a $100,00 home purchase price, your down payment would be $3500 and the amount you actually mortgage is $96,500.
This is a great home loan for first time home buyers, lower income/credit scores.
Another good factor about the FHA loan is that the home you buy must meet certain requirements to. Your realtor, lender, home inspector will note "Health and Safety Issues". It protects not only the lender (as your home is the collateral for the loan), it also protects you from buying a home with unseen hazards.
A good example would be lead based paint. Homes built prior to January 1, 1978 could still contain this paint, which has shown to be a danger to young children. It is common for homes of this age to have been updated and this paint removed. The seller should be able to provide a home buyer through a Lead Based Paint Disclosure of any knowledge of this paint having been used/removed.
A home inspection by a licensed home inspector is vital to determine the viability of the home. The structure of the home including the roof/basement/crawl space will be evaluated according to FHA guidelines. Necessary elements of the home (heating/air, hot water heater, electrical) will also be evaluated.
This is just a tidbit of information on the FHA loan. The best person to talk with is your mortgage broker/lender.
If you haven't already selected your home lender, your realtor will be able to recommend some FHA approved lenders.
TeamCarruth has chosen to partner with Casey Parsons with Guild Mortgage. Not because they offer any "different or better" products, but it is because of Casey's work ethic. Just as TeamCarruth is never closed, neither is Casey. She makes herself available to her clients 24/7, weekends and holidays. Casey sees the loan process all the way through. Just as TeamCarruth, she is also there for you after closing! You are not forgotten!
We are more about the relationship not the transaction. We strive to make each home selling/buying experience fun, easy and fulfilling!
Join TeamCarruth today! We want to be your realtor!
Wash those hands!
Janet and Thomas Carruth
Sweet HOMElife Real Estate
You can contact Casey at: https://branches.guildmortgage.com/al/mountainbrook/casey-parsons-744-mccp.html
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