FHA loans are an attractive option, especially for first-time homeowners in Cincinnati, as well as all of Ohio, because it is insured by the Federal Housing Administration (FHA). The federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments. Typically the borrower can be approved with 3.5% down vs 20% that is required on other loan programs.
What is a FHA Loan?
A FHA Loan is provided by the Federal Housing Administration and requires a lower down payment. FHA loans are a great option for young, 1st time home buyers who have not been able to save a large down payment or have a less than perfect credit score.
Benefits of FHA Loans
There are many benefits to FHA Loans beyond just a lower down payment. FHA loans currently offer rates that are better than a Conventional loan. The seller is also allowed to contribute up to 6% of the loan amount towards the buyers closing costs. The monthly mortgage insurance premiums are typically lower than a Conventional loan. FHA loans are also assumable.
FHA Loan Eligibility
FHA Loans have more flexible requirements than a traditional conventional mortgage. Borrower’s who apply for an FHA Purchase loan require a minimum down payment of 3,5%, which can be a gift. The property must be owner occupied and have a debt to income ratio no greater than 50-55%.
FHA Loan Limits
Different counties have different limits on how much you can borrow for an FHA Loan. The floor for an FHA loan is $294,515. The maximum FHA loan amount is $679,650 for high cost areas.
Get Pre-Approved for a FHA Loan
If you are a first time home buyer, or simply seeking a lower down payment in Cincinnati, or anywhere in Ohio, contact Superior Mortgage Services Inc at (513) 474-0899 for more information, or fill out the form on this page.