FHA purchase loans are another service proudly offered by First Financial Mortgage. Our staff has the experience and the knowledge to gladly make the process of acquiring an FHA purchase loan in Maine as stress-free as possible!
FHA purchase loans are administered via the Federal Housing Administration, which began operations in 1934 as a branch of HUD. FHA purchase loans feature a variety of sub-loan programs that appeal to buyers of various circumstances looking to buy a home.
Purchase loans are insured by the FHA, which has led to these loans becoming greatly beneficial to borrowers wishing to purchase a house. Lenders who fund these loans are protected by a mortgage insurance requirement, which is essentially insurance to cover potential losses they may suffer as a result of a borrower defaulting.
FHA purchase loans have credit score qualifications that are easier to achieve than many other loan programs. They also can reduce down-payment expenses and closing costs.
First-time homebuyers are those who have not owned or purchased a home in last three years. These specific types of borrowers routinely have their down-payment requirements be 3.5% of the price of the home.
All borrowers, however, must be aware of the applicable loan limits enforced under FHA purchase loans. These limits are dependent on the location of a home, specifically its county. Cumberland County in Maine is the top location First Financial Mortgage serves, and below are its loan limits:
As mentioned earlier, FHA purchase loans are basically a family of various loan programs functioning under one umbrella that appeal to buyers of different circumstances. Featured FHA purchase loan programs are:
- Fixed-Rate FHA
- Adjustable-Rate (ARM)
- Graduate Repayment Mortgage
- Growing Equity Mortgage
- Energy Efficient Mortgage
- FHA Condominium Loan
The fixed-rate FHA loan is a great purchase loan option for homebuyers who do not have enough capital to buy a home on their own. This loan features a term that possesses the same interest rate throughout its entirety.
The adjustable-rate mortgage is great for homebuyers in the low-to-moderate income classification who aspire to be homeowners. It is casually called “ARM”, and it consists of a mortgage that starts with a fixed interest rate that begins to adjust to the current market after a pre-determined length of time.
For homebuyers in the low-to-moderate income classification, but anticipate a significant raise coming in the next 5-10 years, the graduate repayment mortgage could be an ideal FHA purchase loan option. The growing equity mortgage can be used for homebuyers as a purchase loan with lower early mortgage payments that slightly increase going forward.
The energy efficient mortgage is good for homebuyers looking to reduce their monthly utility bill costs. It can also incorporate the expenses for energy-efficient enhancements into a mortgage. FHA purchase loans can also be used by low-to-moderate income buyers looking for condos with the FHA condominium loan.
At First Financial Mortgage, we can answer all of your FHA purchase loan questions and help you through the process! Call us today at (207) 321-5307 or click here to get started online!