PRESQUE ISLE, Maine (WAGM) – The pandemic hasn’t stopped some destination people from buying the home of their dreams. Shawn Cunningham explains how this can still become a reality with government help in this week’s Real Estate Matters.
Worried that you can’t afford the house of your dreams and that you have to make it a DEFERRED dream. Don’t be. There is financial assistance available through the federal government through what is called an FHA loan, a federal housing loan.
Luann Morgan Loan Officer
“Is for a first-time buyer, but not necessarily a buyer who may have a lower credit score or may only have a small amount to deposit as opposed to traditional loans … it’s federally guaranteed, so mortgage insurance is federally insured and it’s a good choice for someone looking for a low down payment at this time.
Shawn Cunningham NO STANDING
Although the government insures the loans, they are actually offered by mortgage lenders approved by the FHA. FHA loans are available for terms of 15, 20, 25 and 30 years with fixed interest rates.
Local real estate agents say they have seen the loans to be of great help to potential buyers.
Stéphanie Fields Real Estate Agent, Fields Realty LLC.
“With conventional selling, some people think it’s a standard 20% discount, so having that smaller percentage to deposit really helps the buyer.”
(TAKE THE GRAPHIC)
There are many types of FHA loans: including
Multi-units … up to 4 units
Renovation loans (203K)
HUD $ 100 down program and
Next door neighbor program
Overall, Morgan says it’s a great incentive to help people fund the American Dream …
“With an FHA loan you can save 31/2% less, which is a lot less because you have that federal guarantee for mortgage insurance, they also allow you to have a much lower credit score , so at the moment if people were having problems during the pandemic without work, their scores may have gone down, that’s a very good option. “
Shawn Cunningham, NS 8.
Copyright 2021 WAGM. All rights reserved.