As little as three years ago hardly anyone sought an FHA loan. That has changed dramatically because today 87% of Buyers are applying for one. Nevertheless, people still have a lot of misconceptions about FHA. To be clear – FHA loans are mortgages issued by qualified lenders and the mortgages are insured by the Federal Housing Administration (FHA).

Myth One – FHA Loans are Only for Low-Income Buyers: This one is not true. There is no maximum income limit for an FHA loan. Obviously, you have to qualify for the loan and you need to prove your ability to pay to the lender.

Myth Two – FHA Loans are Only for First-Time Homebuyers: Again. This is not true. It doesn’t make any difference how many times you’ve purchased a home before.

Myth Three – FHA loans are just for small loans: Well, I guess this just depends on what you consider “small.” In the five surrounding counties in Nebraska (Douglas, Sarpy, Cass, Washington & Saunders) the FHA loan limit is $271,050 for a single family home.

It’s also important to remember that FHA loans are often more affordable than conventional loans. The interest rates are the usually the same but a borrower only needs a down payment as low as 3.5 percent for an FHA loan.

If you are thinking of buying a home then consider an FHA loan. There is a general unwillingness with lenders in today’s economic climate to extend credit with conventional loans. FHA is a better bet for them too. It’s easier to lend money when FHA assures them of repayment.

Give me a call at 402-670-8775 or email me at Marie.Otis@cbshome.com and I’ll help you navigate the home-buying labyrinth. You need a pro on your side.