Skip to content

Understanding FHA Mortgages ? Carthage Savings & Loan


Everything You Need to Know About FHA Mortgages

If you’re interested in owning a home but are concerned about the state of your finances, there’s good news. The Federal Housing Administration (FHA), a part of the United States Department of Housing and Urban Development (HUD), is dedicated to helping people find affordable housing options. Thus, FHA loans are designed to provide assistance to those who may otherwise struggle to afford a new home. Whether you are worried about making an initial down payment or just want to learn more about this resource, Carthage Savings & Loan is here to offer all the details you need to know.

What exactly is an FHA mortgage?

An FHA mortgage is a loan meant for those who don't have the financial resources needed to approach the home-buying process through a traditional mortgage. It’s a smart choice for people who have had trouble saving up for a down payment, as it requires a lower amount of money upfront.

Regardless of if you've had significant life events impact your finances or have too many monthly expenses to save for a home, FHA loans can help. Because the loan is insured by HUD, lenders are more likely to offer a better deal to prospective homeowners. This means that you may secure an FHA loan with a down payment as low as 3.5% of the purchase price – far less than traditional loans may require.

How can I benefit?

Aside from not having to put a large sum of money down on your home, FHA loans provide several other advantages. First, through many reputable financial institutions like Carthage Savings & Loan, you can get pre-approved for free. We know it’s helpful to be able to avoid an extra fee when house shopping on a budget, which is why we offer this benefit to our members.

FHA mortgages also come with flexible terms. Many institutions will offer fixed- and adjustable-rate options and can help you decide which is the smarter choice based on your financial situation. You can even get a loan for up to 30 years, giving you plenty of time to pay it back. This is particularly helpful for those who are looking for a lower monthly payment. You'll also avoid private mortgage insurance (PMI), which is another monthly expense most homeowners have to pay.

Is an FHA mortgage the right home loan for me?

FHA mortgages are a great choice for first-time homebuyers who haven't had as many years to save up. And because decisions are generally made quickly, they are also a good option for those who are in a hurry to move. This is especially helpful for those who need to move out of an apartment complex or housing situation unexpectedly. FHA loans can also be issued for mobile homes and factory-built housing.

In addition, if you have bad credit or no credit at all, you should look into an FHA loan. At Carthage Savings & Loan, you'll have a good chance of qualifying as long as you haven’t suffered a recent bankruptcy or foreclosure. If you're interested in learning more about the FHA loans we offer, contact us for more information or visit your local branch today.

View all posts