Phone: 
612-990-9009
email:
Steven@StevenHong.com
Menu

Home Buying 101: FHA Mortgage

The FHA Mortgage

This mortgage is a great product for first-time home buyers, and in fact, is geared towards first-time home buyers. This is a government backed loan that many people use to purchase their first home. This is especially true if you don’t have 20% saved up for the down payment. The down payment on an FHA loan can be 3.5%, and that money can be a gift from a close family member.

Pros:

  • 3.5% minimum down payment, can be from gift funds
  • Relaxed standards for credit score (compared to conventional)
  • Usually a better interest rate

Cons:

  • Mortgage Insurance Premium to be paid up-front, at closing
  • Mortgage Insurance Premium monthly
  • FHA has a minimum standard that the house has to meet, work orders may need to be rectified before closing on the house.
Steven Hong - RE/MAX Results 
REALTOR, e-PRO, GREEN, Old Home Certified 
7700 France Ave S #230, Edina, MN, 55435 
612-990-9009 (cell) 
952-915-2252 (office)
Licensed in Minnesota. Disclaimer: Each office independently owned and operated. Privacy Policy
linkedin-squaretwitterfacebookgoogle-plus