Financing a Home with a FHA Loan – The Basics

{[}]{[}]FHA loans are once more in vogue and the preferred choice for financing a home for most first time home buyers and many move-up buyers also.  There was a period of time where it looked like FHA loans had gone the way of the dinosaur.  Instead, zero down payment programs became the extinct species and FHA loans are again a great option for many homebuyers.{[}]{[}]However, many buyers we see are unfamiliar with FHA loans.  So, what is an FHA loan and how can it help you?  FHA loans are insured by the Federal Housing Authority, a government agency.  As a result, your lender requires a lower down payment and easier credit guidelines.  Most FHA loans in GA require a down payment of 3.5% and a credit score as low as 620 with some lenders.  And in most of metro Atlanta, the loan amount can be as high as $346,250.  FHA loans are also very competitive for interest rates, presently the rates are in the mid 4% range.{[}]{[}]So, don’t be overwhelmed by the thought of saving up for a 20% down payment take advantage of the great homebuyer market that we’re in!{[}]{[}]
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