Wisconsin FHA Loan Programs
If you're considering a move to Wisconsin, now is a great time to invest in a new home in the state as well. The real estate market is great for buyers right now, and you'll be able to get plenty of house for your money if you act quickly. Since the economy isn't as strong as it could be, sellers are motivated and now is absolutely a great time to start your journey towards homeownership. And if you've never purchased a home before, the Wisconsin FHA program can be exactly what you need to make your dreams come true.
The Wisconsin FHA program is a program sponsored by the Federal Housing Administration and is designed with first time homebuyers in mind. If you're concerned about qualifying for a loan because of your credit score or because you have a limited credit history, Wisconsin FHA loans have less stringent requirements and even allow borrowers who have declared bankruptcy to receive a loan should they otherwise qualify. The loans are disbursed through a regular lending institution, who is then provided a guaranty from the FHA to secure the loan and make it less risky to the bank who made the disbursement.
FHA Home Loan Benefits
The benefits of a Wisconsin FHA loan don't just stop at credit standards, however. Homebuyers who qualify for the program will also benefit from the reduced down payment amount required by the FHA. While most traditional programs require at least 20% of the purchase price of your new home as the down payment, Wisconsin FHA loans merely require 3%. On a $200,000 home, therefore, buyers who chose a traditional loan program would have to save up $40,000 for a down payment, but FHA borrowers would only need to come up with $6,000. Most loans also require borrowers to pay closing costs totaling as much as $8,000 up front while Wisconsin FHA loans actually allow borrowers to roll these costs into the loan. These measures combined can not only save money but also time: every month it takes to save the amount of cash required by traditional loan programs is just another month that you're throwing money away paying rent instead of owning your own home.