It is no secret that it is harder to step up on the property ladder. This is in no small part due to individuals paying exorbitant rents, which allow them no room to save for a down payment on a home. Thankfully, it is no longer necessary to find a 20% down payment. There are options that make buying a home much easier.
FHA (Federal Housing Administration) loans are perfect for those who can easily afford a mortgage but cannot manage the 20% down payment. FHA home loans make homeownership in North Bay, WI more accessible to lower and middle-income individuals and families. However, they do not work for everyone. Contact a representative at Compass Mortgage in North Bay to find out what an FHA loan can do for you, and if you can qualify.
An FHA home loan is insured by the FHA, though they are provided by an approved mortgage lender.
There are two key advantages to an FHA home loan in North Bay:
The average credit score is 620, which is typically what traditional lenders will require you to have in order to take out a mortgage. On the other hand, an FHA loan will accept people with scores as low as 500; however, the lower the score, the higher the down payment required.North Bay
For example, a score between 500 and 579 can still be accepted, but the down payment requirement will be at least 10%. A score of 580 and above can qualify for a down payment of as little as 3.5%.
FHA mortgage loans are always provided by an approved FHA lender such as Compass Mortgage in North Bay. The key difference is that the loan must be guaranteed by the FHA.
That means you are required to pay monthly premiums to the FHA for their mortgage insurance. They will then pay any claim if you happen to default on the loan.
North Bay FHA loan lenders can offer a few different types of FHA loans. Depending on your needs and the type of property you wish to purchase, one of these options will be the best fit for you:
The biggest requirement for anyone looking to take out an FHA loan is that it must be used for the purchase of your primary residence. Once the sale has been completed, you are required to move into your new home within 60 days. You are then required to live in it for at least a year before you can move out.
This means the FHA loan is not ideal for anyone looking to purchase second homes, vacation homes, or property as an investment.
The only exception is those who want to receive a rental income from their property. There are two ways to do this:
Compass Mortgage is your approved North Bay, WI FHA loan provider. Our team specialize in mortgages and have expert advice for you.
The process of application involves several steps:
Contact Compass Mortgage in North Bay today, and we will happily assist you in finding the perfect mortgage for your perfect home.North Bay