Federal Housing Administration – Financing
The Federal Housing Administration (FHA) offers government-insured loans that are easier for first-time homebuyers to obtain. These loans can be obtained for as little as 3% down payment and often have financing available for closing costs. If you don’t have cash available for the down payment, a gift from a family member or cash from a non-profit assistance program is acceptable. The seller can also credit up to 6% of the sales price to the buyers costs. FHA loans are available in several options; conventional mortgages and adjustable rate mortgages or ARMS. The option you choose will depend on your personal financial situation and how long you intend to be in the home.