In 2009 it was time for my wife and I to renew our lease.  We had lived in a duplex for the last two years and were considering whether or not to extend for a third.  Our rent was responsible but after realizing that we had given our landlord more than $16,000 in two years, we couldn’t stomach that number going to $24,000.  That’s when we began the search for our first home.

Like most first time homebuyers, we had limited funds for a downpayment, so a Federal Housing Administration (FHA) loan was our best option.  One of the main advantages of FHA loans is the low-down payment requirement. Typically, borrowers can qualify with a down payment as low as 3.5% of the purchase price.

FHA loans have specific requirements around the type of house that will qualify, and it needs to be within certain price points.  Your Lifetime Agent can help explain these requirements and also show you multiple houses that would qualify for this type of loan.

Once in our new home, our monthly payments were not much more than our rent was, but we began building equity which would help up later when we sold it.  3.5% down on the purchase plus a few years of application, turned into a considerable downpayment on our second home.

It’s important for potential buyers to work closely with a qualified lender and real estate professionals to understand the specific terms and conditions of FHA loans and how they apply to their individual financial situation.  To understand the buying process, make sure you download our Buyer’s Guide for making your first purchase and fun and exciting experience.