PRESQUE ISLE, Maine (WAGM) -The pandemic hasn’t stopped some people from destination buying their dream home. Shawn Cunningham explains how that can still become a reality thanks to government help in this week’s Real Estate Matters.
Worried that you can’t afford your dream home and have to make it a dream DEFERRED. Don’t be. There’s financial help available thanks to the federal government by way of something called a FHA loan, federal Housing Administration loan.
Luann Morgan Loan Officer
“is geared towards a first time home buyer but not necessarily its a buyer who maybe has a lower credit score or maybe only has a small amount to put down as opposed to traditional loans….its guaranteed by the federal government so the mortgage insurance is through the federal government and its a good choice for somebody whose looking for a low down payment right now.”
Shawn Cunningham NO STANDUP
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Although the government insures the loans, they are actually offered by FHA-approved mortgage lenders.FHA loans come in 15, 20, 25 and 30-year terms with fixed interest rates
Local realtors say they’ve seen the loans be a big help to potential homebuyers.
Stephanie Fields Realtor, Fields Realty LLC.
“with the conventional sale some people think its a standard 20% down so having that smaller percent to put down is very much an assistance to the buyer.”
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There are many types of FHA loans out there:including
Multi-units…up to 4 unit
Renovation loans (203K)
Reverse Mortgage
HUD $100 Down Program and
Good Neighbor Next Door Program
Overall, Morgan says its a great incentive to help people finance the american dream…
“with an FHA loan you can put 31/2% down which is a lot less because you have that guarantee from the federal govenrment for the mortgage insurance they also allow you to have a much lower credit score so for right now if people had problems during the pandemic been out of work their scores might have dipped this is a really nice option.”
Shawn Cunningham, NS 8.
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