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FHA Loan Basics

INTRO

Ever wondered what exactly is a FHA loan? It’s a great loan program that makes home ownership possible for more people. If you’ve had trouble find a conventional loan that works for you, a FHA might be right for you. This report will answer all your questions.

REPORT

The Federal Housing Administration or FHA is a government agency that was created to make home ownership available to more people. The FHA loan has helped 34 million people to own a home, and it can help you attain the dream of home ownership. Even though a FHA loan isn’t just for first time homebuyers, this loan is perfect for anyone who has thought about owning a home at one point. The requirements are easier to qualify for then a conventional loan. The biggest advantage is that the down payment is usually much lower then a conventional loan.

Here are the basics of the advantages of a FHA loan.

Low Down payment – The down payment is often the biggest thing that has stopped someone from owning a home. With down payments of 20% on conventional loans being common, this can be very difficult for many people to come up with. According to the US Census Bureau the average price of a home in the US is $273,000, with a 20% down payment, someone would need $54,600. Most people don’t have that kind of money lying around. With a FHA loan the down payment is only 3.5%, or a $9,555 on a average priced home, which many more people can afford.

Lower Credit Requirements– Credit requirements for conventional loans these days can be pretty high. Not only that, but if your credit isn’t perfect you can end up paying more on a down payment. If your credit is less than perfect, FHA might be the loan for you. You may qualify for an FHA loan even though you have had financial problems. Even if you’ve had bankruptcies a FHA loan is not out of question as long as you can show that you’ve made consistent payments for the last 2 years.

No Mortgage Insurance– Since the FHA is a government loan, it is backed by the government. Because of that there is no need to pay mortgage insurance that you would pay on a conventional loan. That makes your monthly payment less, and could save your hundreds of dollars a year.

There are of course limitations, not every home qualifies for a FHA loan. The loan limits on a FHA loan are typically $417,000. There are some areas where homes prices are more expensive that have higher limits. To find out what your loan limits are please contact us. We can also pre-qualify you to find out if a FHA loan is right for you.

loan that was created to make homeownership easier for everyone.


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Debi CampbellDebi Campbell
17:05 13 Feb 22
John McCoy and his staff are just outstanding! Their efficiency and ability to respond quickly to any of my questions and needs is what made the... difference in me getting my house so quickly. It only took 3 weeks because of their ability to expedite m paper work quickly to those that needed it, along with my clean credit! Thank you so much for all your hard work! Each one of you!read more
Bobbie-Jo TorresBobbie-Jo Torres
19:49 07 Feb 22
Very quick and helpful. They made everything smooth and easy and in terms that I could understand! Highly recommend!!
daniel villarrealdaniel villarreal
04:19 03 Oct 21
John The Mortgage Man went that extra mile to make sure I received the best mortgage on our new home. Very satisfied. Thank You John.
Danny OchoaDanny Ochoa
17:39 16 Jan 21
John was the one who took a chance on me and my wife . Thank you so much for changing our lives and putting us in our new home . If anyone out there... needs someone to help them make there dreams come true reach out to John and the professionals mbn financial.trust me they won’t let you downread more
Herb FarleyHerb Farley
23:05 06 Jan 21
What an amazing experience! John and his team were extremely responsive and easy to work with! They made the loan process easy and never hesitated... to answer our questions. I would recommend John the Mortgage Man to anyone looking for a loan!read more
Mason ShirleyMason Shirley
18:19 04 Jan 21
Working with John McCoy was very easy and convenient. He walked us through the entire loan process with excellent communication and knowledge. We... were in a time crunch to purchase a home before the end of the year, and John worked fast to make it happen. Would highly recommend!read more
Debbie PowellDebbie Powell
05:38 21 Dec 20
John has helped me purchase 2 houses! John is easy to talk to and makes you feel like family. He is the best person you could have to help you in... this process! John will make it happen! Thank goodness he came highly recommended to me. John is truly a hero!read more
Vivian SimsVivian Sims
19:38 20 Dec 20
John McCoy has been our "mortgage man" on two purchases. Both went smoothly without a complication. The money and timeline were exactly what he... represented. I have recommended him to many looking for a mortgage. If you are looking for An honest, smooth mortgage progress, call "Jo John, the Mortgage Man". Way to go "Mortgage Man"!read more
Amando CanalesAmando Canales
20:21 18 Dec 20
John The Mortgage was a most professional experience my wife and I had a pleasant experience and were most satisfied with his service his can do... attitude was greatly appreciated.read more
Mark FosterMark Foster
11:17 30 May 19
John and his team worked diligently to make the process as easy as possible. They kept me informed and sent me step by step what they were doing so I... always knew where we were in the process. I had a very low credit score and they still made it happen! Thanks John, Troy, Allan and the whole team.read more
Rich and Bekah RobertsRich and Bekah Roberts
17:43 24 May 19
John and his team are excellent at what they do. Very friendly and helpful, yet also down to earth and realistic about your ability to attain such... and such mortgage. John will let you know if your "dreams" are a match with the reality of your financial situation. John wants you in a mortgage, but he wants you in one you can afford comfortably. I had numerous questions throughout process, and John gladly answered each and every one. I am very grateful my wife and I chose John, and would do so again if/when we have other mortgage needs. If you're ready to buy a home, you wont be disappointed with John McCoy!read more
Jeremy DeanJeremy Dean
06:16 07 Mar 19
John the Mortgage Man worked to get me and my wife into our first home this year! We had some issues with low funds, high debt and bad credit, but... John helped us to determine how much we needed to save up to get in the home we wanted. Once we got there John was able to hook us up with a lender and get us a good deal on a loan. We closed in just over two weeks from the time we found a house that we wanted! John always made us feel at ease and answered any questions we had. Very knowledgeable, very responsive and very kind! Thank you John for everything! Highly recommend!!!read more
John McCoyJohn McCoy
15:12 19 Feb 19
John made getting our loan processed very efficient and worry free. He will do the same for you!
CJCJ
19:47 20 Oct 18
12 days from application to closing, now that's fast! Great overall service, everything John said he would do, he did it. My clients were thrilled.
Frank J RosatiFrank J Rosati
19:15 20 Oct 18
John made everything easy for the purchase. He had everything covered (all the associated costs, paperwork) that I needed to close. It was a pleasure... to work with him again (this is my second time working with John) and I would highly recommend him to anyone looking to finance a home.read more
debbie powelldebbie powell
19:05 19 Aug 18
John goes out of the way for you to make sure you are informed, kept up to date, and always professional. Definitely goes the extra mile to help!... Everything is done in a timely manner. Thanks so much John! This is my second mortgage through John McCoy and team.read more
Shawn LockettShawn Lockett
21:22 23 Mar 18
This guy is a wiz!!! He knows a ton about this business and how to get things done!!! Be up front, honest, and ask him your concerns and he will be... straight with you in return and get you in the house of your dreams... He was able to take us start to finish in three weeks time!!! Awesome awesome experience!!! P.S. He will only call you with news—it’s how you interpret it is up to you... Give John a call, you won’t regret it!read more
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John McCoy NMLS #308360
NEXA Mortgage, LLC NMLS# 1660690
AZMB 0944059

John The Mortgage Man
NEXA Mortgage, LLC
3100 W. Ray Road, Suite 201, Office 209
Chandler, AZ 85226
(361) 510-1420johnthemortgageman@hotmail.com