North Dakota FHA Home Loans
Thinking about buying your first home? You couldn't have picked a better time. Despite the fact that the economy is picking up a bit of steam, house prices are still low in most areas around the country. Sellers are highly motivated to negotiate since there is such a large amount of competition, and if you are financially and emotionally prepared to take the plunge, you can get a fantastic deal on a house.
But what if you're not sure if you are financially ready? Financing your new home can be a confusing process, especially if it's your first time buying real estate. Thankfully, the North Dakota FHA loan program can simplify the process considerably.
Why Choose FHA Loans?
North Dakota FHA loans are specifically designed with the first time homebuyer in mind. The Federal Housing Administration, who manages the program, provides a guaranty for each loan issued so that your bank is able to relax their usual lending standards without exposing itself to higher risk. With the help if the North Dakota FHA loan guaranty, your bank will be more willing to provide you with a loan even if your credit is not perfect and in fact, even those who have declared bankruptcy can potentially qualify if they've maintained excellent credit since.
The North Dakota FHA loan program is also perfect for buyers who haven't been able to save up the traditional 20% down payment that most banks require, plus additional cash for closing costs. FHA loans only require 3.5% down, and the closing costs can be rolled into the loan, saving you an additional $6,000 in upfront cash.
FHA Loan Limits in North Dakota
For qualification information and more specifics about North Dakota FHA loans, speak with your lender right away. There are certain basic qualification criteria you'll need to meet, and since there are maximum loan amounts for North Dakota FHA loans, you'll need to have some idea of how much you can borrow before you start shopping. The maximum is adjusted every year and, for 2009, is currently $217,050 for single family dwellings. If you live in a high cost of living area, never fear. The amount is adjusted for these areas so that regardless of your location, you'll be able to afford a house. Since, however, North Dakota does not have a high cost of living, the baseline limit applies statewide.