Georgia FHA Loan Financing
You may have noticed that the average price of homes in your area has dropped in recent months. Partly due to the slowing economy and partly due to the usual cyclical nature of the housing market itself, housing prices are definitely lower now than they were a few years ago. If you're in a financial position to do so, now would be a great time to buy your first house! If you've been thinking about becoming a homeowner but are concerned about qualifying for a traditional loan, you should consider looking into the Georgia FHA loan program.
FHA Loan Advantages
Georgia FHA loans, which are guaranteed by the Federal Housing Administration, are a great alternative to loan products that you can get at any bank. Where traditional loans generally require excellent and extensive credit, the Georgia FHA loan program has slightly relaxed standards, making it easier for people with a few credit blemishes or even, in some cases, bankruptcy qualify for a loan.
Additionally, while most loans require 20% of the purchase price as a down payment, Georgia FHA loans require as little as 3.5%. The significantly reduced amount of down payment required makes it substantially easier for many people to buy a house, and to do so earlier in their lives which can lead to increased equity and an easier time retiring if they can pay off the loan before leaving their job.
FHA Loan Limits in Georgia
An important consideration to research before going to your bank to obtain a Georgia FHA loan, however, is that the program does have an upper limit on the amount of money it will loan for a new home. Based upon the median cost of housing for the country, the maximum loan value is set each year (2009's value is $271,050) and then adjusted in areas where the cost of living might be higher than average.
The cost of living adjustment allows even those who live in areas with an expensive housing market to be able to afford a home under this program. While most of Georgia's limit is $271,050 for a single family home, suburbs of Atlanta often have a limit of $346,250. Check with your lender to get the exact loan maximum for the area you're considering, and be sure to notify him or her if you are planning on purchasing a multi-family dwelling since the limit might be higher or lower.