February 26, 2019
You can never start planning too early when it comes to buying your first home. There are a lot of variables to take into account when planning your FHA home loan including the nature of your home loan itself.
FHA Home Loans: Different Loans For Different Needs
The first-time home buyer who wants to buy real estate that needs repairs will apply for a different FHA home loan than those who want to have a home built for them from the ground up using an FHA One-Time Close construction loan.
The FHA fixer-upper loan is known as an FHA 203(k) Rehabilitation mortgage and can be applied for as either a new purchase loan or a refinance loan.
The type of FHA loan you will need for mobile homes/manufactured housing is an FHA Title I loan. The mortgage you need to buy a typical suburban property is an FHA 203(b) mortgage.
Be sure to tell your loan officer what kind of property you hope to purchase with your first FHA mortgage.
Save More Money Than You Need For Closing Costs And Down Payment
The FHA mortgage loan process, like any mortgage loan transaction, may include costs along the way that some borrowers do not anticipate, like funds for compliance inspections in the cases where repairs are required by the FHA appraiser as a condition of home loan approval. You may also need to pay for a flood zone determination or similar services if your new home is in an area know for natural disasters.
Anticipate such expenses-you will be glad you did. Buying a home is a major investment and it always helps to have some cash in reserve just in case.
Don’t Expect The Closing Date Of Your Loan To Be The Same Day You Move Into The New Home
It’s a bad idea to schedule moving trucks and related services on the same day your loan is scheduled to close. Circumstances can delay the closing date of your mortgage, your seller may need additional time to vacate the property, and it’s a good idea overall to look at another date than closing day to actually make the effort to move into the new home.
Talk to a participating FHA lender about your first-time home buyer questions, your home loan needs, and your goals for the property. You will be glad you took some extra time to make sure you get the right mortgage loan for your needs.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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