FAQ’s for FHA Loan
What Is an FHA Loan?
These FHA loan FAQs answer the questions I hear most often from Georgia home buyers, starting with the basics. An FHA loan is a mortgage insured by the Federal Housing Administration and designed to help buyers qualify for homeownership with more flexible credit and down payment requirements than conventional loans.
What Credit Score Is Needed for an FHA Loan?
Many FHA lenders allow credit scores as low as 580 with a minimum down payment. In some cases, borrowers with lower scores may still qualify with additional requirements.
How Much Is the FHA Down Payment?
The standard FHA down payment is 3.5% of the purchase price for qualified buyers, making FHA loans popular with first-time homebuyers.
Can FHA Loans Be Used for First-Time Buyers Only?
No. FHA loans are available to both first-time and repeat buyers, as long as the home will be used as a primary residence.
Are FHA Loans Available in Georgia?
Yes. FHA loans are widely used across Georgia, including Savannah, Effingham County, Bryan County, and surrounding areas.
FHA buyers may also benefit from understanding long-term property tax savings in Georgia, such as the Georgia Homestead Exemption.
Who Should Consider an FHA Loan?
FHA loans may be a good option for buyers who:
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Have limited down payment savings
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Are rebuilding credit
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Want flexible qualification guidelines
FHA loans also come with mortgage insurance. Borrowers pay an upfront mortgage insurance premium, which is usually added to the loan amount, plus an annual premium that is included in the monthly payment. Ask your lender how long the annual premium will last on your loan, because it depends on your down payment and loan term.
The home itself has to qualify, too. An FHA appraisal checks the value of the property and looks for basic health and safety issues, such as a roof at the end of its life, peeling paint on older homes, or missing handrails. Repairs the appraiser calls out usually need to be finished before closing.
FHA loan limits are set by county, so the maximum loan amount in Chatham, Effingham or Bryan County may be different from other parts of Georgia. Your lender can confirm the current limit for the area where you are shopping.
The down payment does not always have to come from your own savings. FHA rules allow gift funds from family members and other approved sources, as long as the gift is properly documented. Sellers can also contribute toward a buyer's closing costs, which is something we can negotiate in your offer.
If you are thinking about an FHA loan, the best first step is a pre-approval. It shows you what you can comfortably afford and what your monthly payment may look like, and it makes your offer stronger when you find the right home. I'm happy to connect you with a trusted local lender and walk you through the rest of the process.
Questions about buying or selling?
Dave answers his phone. Call, text or email anytime.
