– FHA mortgage loans have been helping homeowners since 1934. The Federal Housing Administration (FHA) insures the loan so your lender can offer you low down payments, low closing costs and less restrictive credit qualifying. AIM has several DPA Programs to where you may qualify to purchase a home with as little as $1000.00 down. FHA offers Rehab loans to have your home upgraded prior to moving in on a purchase by offering up to $35,000.00. FHA also offers the popular Reverse Mortgage for purchases. With most FHA loans your down payment can be gifted from a family member, employer bonus, DPA Grants or seller contributions.
In an FHA mortgage the customer must put at least 3.5% of the sales price into the transaction. Some of this money may be used for down payment and the rest for closing costs . Keep in mind, however,that the total cost to close on an FHA is commonly over the 3.5%.
FHA allows the borrower to get the funds necessary to close from several sources. They include such areas as personal savings, gifts, grants, down payment assistance programs, loans from retirement accounts and seller contributions.