If you’re like many people thinking about buying a home in Baton Rouge, you’re wondering about FHA loans – what are they, who’s eligible, and how do you get one?
What is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration, or FHA. These types of loans allow for a down payment of 3.5 percent (rather than the standard 20 percent) for people who have credit scores of 580 or above. The downside for many buyers is that if you use an FHA loan, you have to pay for private mortgage insurance premiums. Those premiums protect the lender if you default (fail to pay) for your loan.
If your credit score is between 500 and 579, you can still qualify for 10 percent down on an FHA loan.
Who’s Eligible for FHA Loans?
In order to be eligible for an FHA loan, you must:
- Have a valid Social Security number
- Be buying a primary residence
- Have the home appraised by an FHA-approved appraiser
- Have a credit score of at least 580
- Be at least two years out of bankruptcy and three years out of foreclosure
There are several other requirements, as well, so it’s a good idea to talk to your lender.
How to Get an FHA Loan
Your best bet is to let your lender know that you’d like to apply for an FHA loan. Your lender’s representative will let you know what to do to apply and which properties will qualify for this type of funding.
Are You Moving to Baton Rouge?
Call us at 225-663-2015 or get in touch with us online to tell us what you’re looking for and we’ll start a custom search right away.
You can also check out our listings for Baton Rouge here:
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