There’s a good reason FHA loans are as popular as they are! Offering low down payments, flexible underwriting guidelines and competitive rates, FHA loans are a great choice for both first time homebuyers and seasoned home buyers alike!
We offer FHA mortgage loans in Raleigh, NC and all of the surrounding areas including Cary, Wake Forest, Pittsboro & Clayton!
FHA Guidance You Won’t Hear Anywhere Else
Many people initially ask about an FHA loan after hearing about the down payments and flexible credit guidelines, especially if you’ve had credit issues in the past or been turned down before.
However, that doesn’t automatically mean that an FHA loan is the best fit for your family.
Here are a few things to think about when it comes to FHA Loans:
Just because you’ve been turned down for a mortgage doesn’t make you an automatic FHA candidate. There may be other financing options for your family.
There are lots of financing options, so before you make a decision based on the results of an online loan application, spend a few minutes on the phone with us to make sure you fully understand your options.
Read all of your disclosures carefully so you have a firm understanding of the rates and fees upfront. A last minute surprise is the last thing you want!
FHA Loan Basics
The FHA loan program was designed to help families get into homes without putting undue stress on their finances. Important details of the FHA program include:
As low as 3.5% down payment options
Gift funds are OK for the down payment
100% financing is available in certain cases
No closing cost options may be available
No income limit restrictions
Conventional Loan Basics
20% down payment is required to avoid PMI
It’s important to get as much information up-front as you can. You don’t want to tie up your assets for 30 days to find out later you don’t have a loan approval.
Requires good or excellent credit
Rates are generally lower and can be adjusted higher or lower by paying additional fees
Can be used to purchase or refinance investment property
In order to allow these more flexible financing terms, borrowers are required to pay for mortgage insurance which protects the lender in the event the loan defaults. There is an up-front premium (typically 1.75%) paid at the time of closing, and an annual premium which is escrowed and paid monthly.
Comparing interests rates, down payments and mortgage insurance premiums can get confusing quickly, especially if it’s your first time buying a home. So while pre-qualifying online is a great start, nothing beats a phone call up front to answer your questions and make sure you understand what to expect.
Areas We Serve
The Sherry Riano Team is licensed to write FHA loans anywhere in the United States.
However, as a local, Raleigh, NC based company, our primary service areas include: