Sandy Flores broker


Award Winning Realtor

International Real Estate
  Contributor @TELEVISAUNIVISION               KMEX 34  Los Angeles,              El Gordo y La Flaca, Santa Ana College               

Award Winning Realtor *   International Real Estate
Los Angeles, El Gordo y La Flaca, Santa Ana College

Using FHA To Purchase Your First Home

By Sandy Flores

The Federal Housing Administration (FHA or Federal Housing Administration), which now belongs to the Department of Housing and Urban Development (HUD, for its acronym in English), was established in 1934 to advance opportunities for Americans to be homeowners. FHA works to make home ownership not only a possibility but a reality. With FHA, you do not need a perfect credit history or a job with high salary in order to qualify to purchase a home.

 FHA MortgageActually, FHA does not directly fund your mortgage loan, but provides mortgage insurance for consumers who meet the requirements to obtain a more affordable mortgage. An FHA loan may be a great solution for you, if for example you’re a first time buyer with no bank account, no credit history or your credit score is low, etc., you can qualify for a loan under the FHA program.  FHA does require a minimum of 3.5 percent down on the value of the property you are trying to purchase. Compared to conventional loans, it is a very low down payment.

With the exception of a few additional forms, the application process for FHA loan is similar to a conventional loan. With new automation measures, FHA loans may be originated more quickly than in the past. FHA does not require minimum income. However, you have to check your repayment capacity through their regular income for at least three years.

If you have debt, FHA has no objection as long as their financial capacity allows to include all such obligations when making the request. FHA allows you to use about 29% of their income for housing costs and 41% for housing expenses and long term debt.

If you are renting, you need to see that you are not taking advantage of some of the benefits associated with purchasing a home. Interest rates have dropped dramatically and the value of properties in the market today are very attractive, particularly with a similar monthly payments that renters today are paying.

The best time to buy is determined by you based on all the factors that are currently experiencing. Buying a house has been and remains a good investment especially if you are well informed of your options, alternatives and obligations to make that purchase.

Buying a home is generally the easiest way to accumulate profit. Three out of four people have more equity in their homes than they do in asset retirement plans, mutual funds and savings through equity if they have not removed the short term through a refinance.

Get all the information you can to be more informed and also consider the help of a professional with experience assisting first time buyers, so you can be guided step by step detail on this important process is the purchase of your first home.

Remember that the more guidance and information you have, the more confident you become to make your home buying experience a pleasant and successful and financially successful.

Stay Educated!

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