I have clients that often come to me wanting an FHA loan because they have heard it’s for first time buyers. True or false? If you answered true, then you would be wrong….FHA can be for a first time buyer or a 2nd or third time buyer! There are some programs that are for first time home buyers when it comes to down payment assistance that you can only use with an FHA loan, but the loan itself is not for first time buyers. True or False- if you put down more than 20% on an FHA loan, then you will not have mortgage insurance. False! With an FHA loan, no matter how much you put down, you will pay monthly mortgage insurance. And FHA has the highest mortgage insurance premium on a 30 year loan. I’ll continue with more FHA facts in another blog as it’s important to know your financing choices.
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