First time home buyers often have little cash and need a home loan that allows a low down-payment. The FHA 203 K home loan is a great option for those who need a low down payment, help with closing costs and help fixing up their new home.
FHA 203 K Home Loan Down-payment
The FHA 203 K home loan is a mortgage that is insured by the Federal Housing Association. As of January 1, 2009 there is a minimum down payment amount of 3.5% of the purchase price of the home. The requirements have tightened up somewhat and many of the programs designed to help first time home owners with down-payment grant funds do not qualify for an FHA loan, so it is a good idea to speak to a mortgage broker about this if the buyer wishes to use grant funds for a down payment.
