First-time home buyers can take advantage of FHA loans that require down payments as low as 3.5%. These loans can be a great way for first-time buyers with good, steady jobs but not a lot of cash on hand to take advantage of the numerous advantages of this buyer’s market including record-breaking affordability and an $8,000 tax credit.
FHA loans can be a good option for buyers purchasing their first home, especially for those who have a small down payment or that have less-than-perfect credit. Lenders usually offer these loans at reasonably low interest rates because the U.S. government insures them against default. Most FHA borrowers opt for 30-year fixed rate mortgages although adjustable rate can also be a possibility. FHA also offers 203(k) loans that can include the costs of repairs for “fixeruppers” with the mortgage.
For more information, check out www.hud.gov/buying/loans.cfm