How You Can Obtain a Savannah FHA Mortgage

Some individuals are not sure if they qualify for a Federal Housing administration loan, but they may be surprised to note that most first time home buyers and those were not in the upper income brackets can easily qualify for either in adjustable rate or fixed rate Savannah mortgage.

FHA loans are very attractive to mortgage lenders, as the lone itself is guaranteed by the Federal government, which means that a low down payment is usually possible as opposed to a traditional home loan.

One of the FHA’s most popular programs involves putting down a low down payment of around 5% on the sales price of a home, and these loans are also assumable by qualified buyers, making it very easy to sell them if you are in a hurry.

As well, an FHA loan design include pre-payment penalties if you ever decide to make extra payments on your monthly mortgage, which also makes this type of loan very attractive for those who hope to pay off a home early.

Generally speaking, the loan limit in the Savannah area is around $300,000, but this value will vary depending on one area of the country living.  There are also restrictions with regards to the down payment, and most buyers are not allowed to use secondary financing in order to cover the cost.

A couple of the fees that will be assessed if you take out an FHA loan include insurance premiums and loan origination fees.  A special appraisal will also be required to obtain one of these government home loans, and the FHA will not underwrite alone if the home is worth significantly less then the assessed value.

Keep in mind that HUD usually has a responsibility of dealing with properties that need repairs, and standard FHA loan programs will usually not cover these types of properties.  There does exist an alternative in the rehabilitation mortgage program.

For many Savannah home buyers, the FHA offers an attractive option for first time homeowners and those who do not qualify for a loan on their own.  If you’re interested in learning more about these types of home loans, the toll free telephone number of the Federal Housing administration is 1-800-225-5342.

If you are looking for additional information about a Savannah mortgage, check out my Savannah mortgage rates site.

 




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