First-Time Buyer or Not, You Can Benefit from FHA Mortgages

By Doug Cary

Doug Cary has been selling real estate in Davis County since 2005. He is a 2nd generation top producing Real Estate Agent.

We have good news for homeowners and potential homeowners! FHA mortgages just became more affordable. Mortgage insurance premiums have decreased by 33%, making it easier for people to get an FHA mortgage.

Many people believe that FHA mortgages are only for first-time homebuyers, but this is not true. Anyone can apply for an FHA mortgage, as long as they are putting little or no money down, either 3.5% or zero down.

FHA stands for Federal Housing Authority, and these loans require very little down on the mortgage. There are certain qualifications that the house must meet, and your real estate agent can help you determine whether a property meets those standards.  FHA mortgages are very similar to VA loans, with the main difference being that you can only have two FHA loans outstanding at a time as long as they’re at least 100 miles apart. You can also have 3 VA loans depending on your VA eligibility.

Mortgage insurance premiums, also known as MI or PMI, are the cost of getting a loan. This insurance is required for loans with less than a 20% down payment. For every $100,000 of a loan, this reduction in premiums saves people $25 per month.

If you have any questions about whether an FHA mortgage is right for you, reach out to a lender or a real estate agent like Doug Carey, who is located in Utah and can help connect you with a great lender. Take advantage of this reduction in mortgage insurance premiums and explore whether an FHA mortgage is a good option for you.