NWR: FHA LOAN?

does anyone know how these work? Or how they differ from a regular mortgage? How much you need to put down etc?

TIA!

They are fantastic.
I don't know all the ins and outs as I'm not a mortgage banker....but I'm familiar with the product because I analyze pools of mortgages for default risk.

They have much more attractive rates, typically fixed and are geared towards first time home buyers at or below median income. You have to take homebuyers education courses and the process is longer than a conventional mortgage but you save and if you have slightly impaired credit, they will work with you. Downpayment terms are 5-10% and there are restrictions as to the price of the home purchased.

Go to SONYMA (state of New York Mortgage Agency) and learn more their and see who their participating lenders are. You can then approach the lender with your interest.

ETA- 3% is right! Thanks girls.

FHA loan is one that is basically backe by the gov't

There is a max amount that can be borrowed, you can find these limits online .... generally goes by county.

they do not go 100% based on credit score. So if you are trying to refi - and you have a low credit score BUT you have not missed ANY mortgage payments you are able to borrow 97% of the value of the home. (up to the max amount)

this loan does not take longer to get, they only accept certain types of proof of income, they do not fall for the types of paperwork tricks that got this country into this mess.

The interest rate is set, and they are fixed rates... so it is a VERY good deal for some people.

I can not remember the limits for when you are purchasing. I know the %'s are good and you can combined it with certain first time buyer grants wich can get you 97% ....

good luck! I used to sell mortgages ..... so if you would like me to look at paperwork, or help you in any way, please let me know!