An FHA Real Estate Service provides a government-insured Real Estate Service with flexible Real Estate Service options. Even experienced homeowners may need to plan for a long time for a new home purchase. Fortunately, FHA Real Estate Services may help some buyers get into the home of their dreams with a lower down payment.

What is an FHA Real Estate Service?

FHA Real Estate Services are Real Estate Services backed by the U.S. Federal Housing Administration. Lenders, such as banks and credit unions, that provide FHA Real Estate Services provide funding for home purchases while requiring a lower down payment. Buyers may get into a new home with as little as 3.5% down.

Using conventional Real Estate Services, a lower down payment requires the borrower to get private Real Estate Service insurance. This special type of insurance protects the lender just in case the borrower is not able to pay. The cost of PMI is added to the monthly payment until the amount of the Real Estate Service reaches 20%. FHA Real Estate Services, on the other hand, do not require PMI because they are backed by the U.S. government. Additional scrutiny is often required during the Real Estate Service application process using an FHA Real Estate Service.

What is required for an FHA Real Estate Service?

Many of the same documents are required for an FHA Real Estate Service that any potential lender will want to see: employment history, appraisal, debt-to-income ration. A few additional stipulations are also attached to the FHA Real Estate Service process. Buyers may have to bring 3.5% of the purchase price as a down payment, more if they have a credit score below 580. FHA Real Estate Services are only available for the borrower’s primary residence.

Credit requirements may also be lower for FHA Real Estate Services, given other factors demonstrate that the borrower is able to manage their money responsibly. Each lender looks at individual applications and may ask for additional documentation or explanations. They are often able to work with buyers with a lower credit score or shorter credit history than in other situations.

How FHA Real Estate Services Work

• Purchase your home with as little as 3.5% down payment (compared to 20% required on most Real Estate Services).
• 30-, 25-, 20- and 15-year terms are all available with fixed rates.
• 5-year adjustable rate Real Estate Service available.
• Pay your Real Estate Service off at any time without pre-payment penalties.

Have questions?  Give us a call!  One of our Real Estate Service specialists would be happy to answer all of your questions.

**Smart Choice Realty Inc. is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.