FAREF -- Home Purchase Information

HOME PURCHASE
INFORMATION

New Homebuyers

Can I really buy a house?

An FHA-insured mortgage might be just the option you’ve been looking for to help you move into the house of your dreams.

A home is both an investment in the community and a savings plan for your future. That's why we at FHA want all Americans to have an opportunity to enjoy the benefits of owning a home.

Knowledge opens doors. This is literally true when it comes to buying a home. The following questions and answers will give you basic knowledge and the tools necessary to navigate the entire homebuying process - from deciding whether you're ready to buy, all the way to getting the keys to your new home!

Are you ready to buy a home?

You can find out by asking yourself:

Do I have a steady, reliable source of verifiable income?
Have I been employed on a regular basis for the last 2-3 years?
Do I have a good record of paying my bills?
Do I have manageable long-term debts, like car payments?
Do I have money for a downpayment?
Do I have the ability to pay a mortgage, and other living costs, every month?

If you can answer "yes" to these questions, you are probably ready to buy your own home.

Don't you need a lot of money down and perfect credit to buy a home?

It's not nearly as hard as you might think. FHA understands that first-time homebuyers may have had some financial problems in the past and don't have a lot of money saved. That doesn't mean you can't buy a home. Because a government agency, FHA, insures your mortgage, lenders are more willing to offer these loans with fewer requirements. Even if you have had credit problems such as bankruptcy, it is easier for you to qualify for an FHA-insured loan than a conventional loan. FHA has a low 3% downpayment, and that money can come from a family member, employer or charitable organization. Many other conventional loans don't allow this flexibility.

How can I find out what my credit rating is?

There are several ways to do this:

You can purchase a credit report, and extra services, from one of the three national credit reporting agencies: Equifax, Experian and TransUnion.
You may be entitled to a free credit report every twelve months from these agencies – learn the details.
You can also visit the Federal Trade Commission's website for consumers additional information about free credit reports and for some good advice about your credit.

Purchase/rehabilitation loans How can I find out what my credit rating is?

Sometimes you might see a home you'd like to buy, but it needs a lot of work. FHA has a program for rehabilitating and repairing single-family properties called the SF Rehabilitation Loan (203k).

The advantage of this mortgage loan is that it combines the base home purchase price and the projected cost of necessary repairs into one loan. That way you can buy a house that needs a lot of work, and then complete the repairs after the purchase

I'm ready to get started. What do I do next?

FHA will take you through the entire homebuying process on the site links below. You can even get pre-qualified for an FHA-insured mortgage, on your computer!

For full information on all FHA Information please check out www.fha.gov.