Many people are taking the steps needed to purchase their own homes. Statistics gathered from the 2016 National Association of REALTORS Profile of Home Buyers and Sellers found that 35% of people purchasing homes were first time buyers. Before searching for the term mortgage company near me, it’s important to know what types of mortgage loans are available. In this post, you’ll learn the importance of FHA loans for home buyers.
The Purpose of an FHA Loan
If you’re trying to purchase a home, you’ll want to know about the Federal Housing Administration or FHA. This administration offers loans that are backed by the government. These types of loans help homeowners fund the purchase amount needed for a new home. Statistics gathered from the 2017 NAR Home Buyer and Seller Generational Trends Report found that 24% of buyers used an FHA loan.