How many times a day, do you think about the long-term effects of your decisions? Probably every time, we get it. Sometimes our minds wonder about so many existential stuff, and the only word that always comes up is “investment”, and it’s true, we need to start investing as soon as possible, and one of the best things to do, is to make your way into real estate.
Why? That’s a good question, real estate is one of the most appealing markets for heavyweight investors worldwide, these venture capitalists are always on the look for options that can gain value over time, whether it comes from renting or by selling the property. But, is there a way to make it easy, in order to become a homeowner as you’ve always wanted?
The answer is: Yes. Have you ever heard about FHA (Federal Housing Administration) loans? If not, let me tell you that these are financial programs, made by the government of the United States. In other words, lenders will ask you for some requirements, and once the process gets approved, the government guarantees the total amount to these institutions.
Down payments are a hard challenge for any homebuyer, but with FHA loans, the situation can be more manageable. Let’s say that you only have to put the 3.5 percent upfront, if the house is valued over $200,000, you’ll only pay about $7,000, and that can be a huge difference, making things easier for you, since most down payment requirements can be up to 20 percent.
The Truth Behind FHA Loans
Before we go into more detail, there’s one thing that you must know, and it’s the fact that you must live in the property, for at least 12 months before planning to do something else with it. When buying a single-family home, this is one crucial requirement for those who want to benefit from an FHA loan.
Once the year passes by, you can leave room for an incoming renter, a great option if you want to make some profit, while also paying the remaining mortgage. Our experts recommend to have a clear plan, in which the goals are described, the rules devised, and the property in question has been visited, so your decisions can have solid foundations.
The great pros of using FHA loans are: (1) the small down payment that comes first in the process, (2) and the availability for those who don’t have a high credit score, increasing your possibilities of homeownership like no other method can. On the other hand, paying a mortgage for years isn’t appealing, but that’s the price to pay, as some say: No risk, no success.
Are you interested in some of these government programs? At AFTHA we’ve provided countless solutions for clients nationwide, making things simpler, faster and more efficiently. Your FHA loan is waiting, want to know how are we going to help you out? Call now to (833) 478-1396, or write to email@example.com. Our experts are ready to dive in.