The Federal Housing Administration (FHA) mortgages help low-to-moderate-income home buyers purchase homes with low down payments and flexible qualifying guidelines. These loans are insured by the FHA, which sets loan limits that vary by area. With an FHA mortgage, you may use a gift for down payment and closing costs.
Choose an FHA loan if you:
Need a low down payment
Have limited savings and/or moderate incomes
Are a first-time or repeat home buyer concerned about not having enough funds for down payment and closing costs on a new home
Keep in mind that an FHA loan is not your only low down payment option. A First South Bank mortgage lender can help you evaluate all of your options and help with deciding which loan option makes the most sense for you.