September 13th, 2018

Finance

Buying the home of your dreams is one of the most exciting and rewarding things that you can do. It's also likely to be the biggest investment of your life. It can also be incredibly confusing for some home buyers who are trying to find the right loan. Shopping for your home is hard enough. Shopping for a mortgage loan can be more complex and far less fun.

FHA Loan Basics

For many, shopping for their dream home the FHA loan is the best option available. It offers a great path to home ownership and is more attainable than ever before. Learning a few facts about it is important. FHA loans are backed by the Federal Housing Administration. This guarantee from the government allows lenders to extend loans with less stringent qualifications and with better terms. In turn, the FHA borrowers will pay for mortgage insurance that protects the lender from a loss.

Top Things To Know

Here's a look at qualification requirements and other info worth knowing.

The Minimum Down Payment Is Lower

Unlike traditional loans that require as much as 20% down, FHA loans require only that you have 3.5% of the home's total purchase price as a down payment.

Your Credit Doesn't Have To Be Perfect

In fact, your credit score can be as low as 580 in order to secure the 3.5% down payment option. You can actually secure an FHA loan with a score as low as 500, but your down payment must be 10% if this is the case.

Your Lender Must Be Approved

The FHA doesn't actually provide the loans. They only secure them. As such, you'll have to get your FHA loan directly through a lender that offers FHA loans and that has been approved by the FHA.

Closing Costs Could Be Included

FHA loans do allow you to include closing costs in the loan total. However, in these instances, you may end up paying a higher interest rate.

Home Repairs Can Be Included As Well

The FHA has a special program that allows you to take out a 203K loan. This includes money that can be used to repair and remodel a home that is being purchased.

Mortgage Insurance Is Required

If you pay less than 20% down on your home, you'll have to pay mortgage insurance including an Upfront Premium paid when you get the loan and an annual premium that is paid over the course of the loan.

Loan Limits Change

Every year the FHA adjusts the maximum and minimum loan amounts. Currently, FHA loans can be between $294,515 and $679,650.

Getting Your Loan

Getting the perfect loan isn't always easy, but local experts exist to help. 

Deb Klein Team

3115 South Price, Suite 115, Chandler, AZ 85248 480-550-0211
The Deb Klein Team is the preferred home mortgage consultants located in Chandler, AZ. They are dedicated to finding great rates and loan options for their customers while providing fast turn times. The Deb Klein team has helped over 2000 customers achieve their dream of homeownership, and they are ready to assist you with your home financing.

Evan Kurtz

Jake and team were incredibly thoughtful and creative in helping me think about various borrowing strategies for personal and investment purposes. I was greatly appreciative for the following: 1) Understanding - the team took the time to understand my goals and how I thought about personal and investment properties. The team helped me think through various borrowing practices for both long and short term deals 2) Timely execution - while working on a time constraint the team was fast to act and candidly fast to inform me when I needed to take action (thank you) 3) Easy to work with - Whether it was working with an actual team member or their client friendly portal, every step of the process was made easy and understandable Looking forward to working with the team again.

10-01-2019

Darlene Carmelotes

It has been an amazing experience working with Deb & her team. They worked above and beyond and exceeded all my expectations. I highly recommend this company to anyone. You’ll never be disappointed in their A+ costumer service. Great job!

08-21-2019

Lamar Keener

I've got to give kudos to Jake Mullins at the Deb Klein team… He (they) provided exemplary customer service. Jake gave us valuable advice and walked with us through the refi process despite not getting our business. We had already started the refi process with our credit union, yet Jake offered to communicate with us with suggestions and counsel, knowing he might not get the deal. I can say he sincerely had our best interest at heart. It was not what was in it for him. That is the reason you absolutely should let the Deb Klein team have a shot at your next home loan.

09-06-2019

Ryan Goggins

The Deb Klein Team is great! Jake Mullins was able to answer all of my questions from the application process to how closing works. We were even able to close early! The whole team is extremely knowledgeable. I definitely know I made the right choice by working with the Deb Klein Team.

06-11-2019

Dustin Reeves

Deb, Robert, and the rest of team were tremendous! They were organized, transparent, communicated frequently, and anticipated and addressed potential issues early in the process, so that when it came to closing day, it could not have gone any smoother! I'm so appreciative of everything they did to help us purchase our home!

06-04-2019

Roy J. DuPrez

Deb was SUPER helpful and was able to tactfully assist through some obstacles that enabled me to access the home I love living in today!

2018-09-18

Brian Lombardi

Deb has done several mortgages for me in the past. There's no one better when it comes to working on your behalf and her follow-up is impeccable. If you have a mortgage need, she's the one to go to.

2018-03-07

Ryan Hall

2017-02-15

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