Question by wbabqueen: What exactly am I getting myself into with a Government loan for a House?
I have no credit, health hospital but not bad credit either. I’m looking for a FHA certified realtor to help me get started looking. Or maybe a list of FHA certified lenders or whatever it is I need. And what does this all involve. I hope I’m not going to be signing my life away. . . Maybe somebody that has done this before… how did it go for you?
Thanks
Thanks Taras Problems. You really sound like you know what your talking about. Thanks for the tips! =)
Best answer:
Answer by Found-1
A house and a mortgage is not something to jump into lightly. Upkeep and the financial responsibility’s are something for only those who are financially secure and have no plans of moving for years to come. I would suggest you get pre-approved for the loan first… then start looking for a Realtor and a house. Many times folks waste precious time and money in looking at houses and never realize they don’t qualify or don’t have a large enough down payment.
Know better? Leave your own answer in the comments!
So long as you get an FHA loan, you will not be signing your life away. The government will only guarantee certain loans (which is what an FHA loan is) and there are many strict requirements. FHA loans usually require a 3-5% down payment. In some instances you may be able to get downpayment assistance. Some things to watch out for:
make sure you get a FIXED rate loan
make sure you are getting only ONE loan (some lenders recommend what is called 80-20 loans which is one loan for 80% and another for 20% that is interest only…these are not FHA loans so you shouldn’t have to worry)
make sure your interest rate is reasonable
I am not sure where you are located, but I am a real estate agent in Georgia and have had a lot of experience with FHA loans. If you have any questions, feel free to email.
Also, to answer your second question, in order to get the ball rolling, find a real estate agent that you trust. Agents usually know lenders that they can recommend to you. Any lender can help you obtain an FHA loan, instead it is a matter of shopping around, finding someone that you trust, and finding a low interest rate with low closing costs.
I almost did it. There is so much you won’t find out until you actually sit at the table and sign the paper. Yes you will sign your life away with any kind of mortgage. If you don’t know what questions to ask, you’ll find out things after the fact when it can’t be changed.
The top contributor is right. Get pre-approve first. Also, attend home ownership seminar if they are available in your area. Read up on FHA and other types loan. You may prefer another type of loan versus FHA, so don’t narrow your options. I sought pre-approval for five types of mortgages included an income based offered by the state. Surprisely, I qualified for all of them. I backed out of all of them when I learn from an outside source that the lower interest rate loan mortgage will require yearly income review. If my income increased to a certain amount, I could be penalized. The penalties would have caused me to lose the house if I did not pay.
Do your research.