FHA Loans and Refinancing
Buying a house can be such a great experience. Finally, somewhere you can really call home, where you can decorate without permission from a landlord, and somewhere you will eventually own outright. That can be a fantastic feeling, but be sure that before you buy, you do a bit of research about what sort of financing will work best for your situation. If you're a first time homebuyer, even if you've had a few credit mishaps, you should strongly consider obtaining a New Hampshire FHA loan for your new house.
The New Hampshire FHA loan program is designed to help potential homebuyers who would not otherwise qualify for a traditional home loan. The Federal Housing Administration provides a guaranty for each loan which lowers the risk of the loan for the bank, which in turn makes the bank much more likely to provide FHA loans to those that might not meet their normal lending standards. Since FHA loans are very often bought and sold as investments, your loan may be sold to another administrator after it is executed, but the only thing that changes for you in this case is where you send the payment.
FHA Loan Benefits
Benefits of the New Hampshire FHA loan program are numerous and include a competitive interest rate (which is tied to the prime rate and is therefore equal to or better than traditional loan rates). Additionally, if you're concerned about your credit score and perhaps have had a few blemishes in the past five years, don't worry. The FHA program is geared towards those who have had credit challenges and might be an excellent fit for you if you've had moderate or even severe credit issues. Even bankruptcy might be acceptable if you've maintained perfect credit since. Furthermore, if you're concerned about the amount of money you might have to come up with for a down payment, never fear.
The New Hampshire FHA loan program only requires 3.5% of the purchase price as a down payment as opposed to the traditional 20% required by most banks. Closing costs can be rolled into the loan as well, meaning that homeowners will need even less cash at closing, to the tune of about $6,000.
FHA Loan Limits
Your lender has more information about New Hampshire FHA loans, including the current maximum loan amount for your area, which varies based on cost of living. The 2009 baseline limit is $271,050 for a single family dwelling.