The Federal Housing Administration (FHA) created the FHA Loan with the intention of making home ownership a dream come true for everyone. FHA loans provide home ownership opportunities to individuals who either can’t afford the traditional down payment of 20% associated with a conventional loan or who do not have a strong credit report. ABC Mortgage is your FHA expert in Myrtle Beach and all of South Carolina.
FHA loans provide a much lower down payment at 3.5% instead of 20%. This makes the home ownership process a lot easier to get through, especially for first time home buyers or young growing families. View chart below to see the vast difference between a conventional loan down payment and the low FHA loan down payment.
|Area||Median Home Price
|Down Payment of 20%||Down Payment of 3.5%|
Along with having the lower down payments, FHA loans have looser financial requirements. You will still need to have decent credit to qualify, however you don’t have to worry about having perfect credit, giving more people the opportunity to own a home.
FHA loans are great for purchasing your first starter home and have the following loan limits. FHA Loan limits differ from county to county and are as follows; Horry County has a loan limit of $286,250 and in Georgetown County is it $395,000. Each of those are a good amount higher then the median home prices in those counties.
So if you thought that owning a home wasn’t something you could afford because of financial requirements, or maybe you’ve heard that an FHA loan is a great home loan options, we make it easy for you to see how much you can qualify for. You can get a free rate quote by visiting our Purchase Assistant tool.