Who Would Want an FHA Loan to Buy a Brooklyn New York Home?

Some Brooklyn home buyers have an advantage that others don’t in today’s housing market.  They can qualify for an FHA loan.

Federal Housing Administration (FHA) loans help Brooklyn home buyers who would otherwise have trouble being approved for a mortgage.  You can qualify for a loan if you have less than perfect credit.  FHA loans are available even after bankruptcy and foreclosure, if you have maintained good credit for the following two to three years.

What are the requirements for FHA loans?

FHA loans have strict home appraisal guidelines.  The appraisal value helps determine the FHA mortgage limit.  Each state has its own rules regarding maximum loan limits.

What are the advantages to FHA loans?

One advantage of an FHA loan is lower down payment requirements.  You may qualify for a down payment as low as 3.5 percent of the purchase price of the property.  Additionally, most of your closing costs can be included in the loan, so you’ll have less out of pocket expenses.

An FHA loan can also be used to buy a house that needs improvements.  If you need cash to make the repairs, you can apply for a loan to cover the cost of the expected repairs.  The FHA also has energy efficient mortgages which include the costs of energy improvements.

What are the terms of FHA loans?

An FHA loan can take many forms: it may be a fixed-rate loan, an adjustable rate mortgage (ARM) or a reverse mortgage.

  • A fixed-rate mortgage has a set interest rate for a set amount of time.  Typically, it will be a 15 or 30-year loan.
  • An ARM has a variable interest rate for 15 to 30 years.
  • The reverse mortgage pays a set amount of money to the homeowner for the entire time they live in the home.

Whether you’d like to finance a Brooklyn home using an FHA loan or a non-FHA loan, I can help.  Give me a call today Charles D’Alessandro of Fillmore Real Estate at (718) 253-9600 ext 206 or email me at [email protected].

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