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FHA Loan Advice

Many people use the Federal Housing Authority Mortgage Programs to purchase homes every year. Through the FHA you can purchase a home without waiting to save a down payment and get good terms on your loan as a result of the FHA guarantee. Some people may want to purchase a home that is above their affordable income because they know their income will increase in the near future. People who are about to graduate from college and people who have a secure job and are working their way up the promotional ladder are some examples of who may want to purchase a home for more than they can currently afford.

** Check out the FHA Loan Limits tool to see the loan limit in your area.

For people who are expecting a higher income in the near future and want to purchase a home based on their future income may want to consider the FHA Mortgage for Homeowners with Increasing Income. Some important information about this type of FHA Growing Equity Mortgage includes:

• People and families who are able to show that their income will increase overtime can purchase the home they want now.
• Payment will begin small and gradually increase overtime. The specific amount the loan will increase at what times will be included in your loan paperwork so that you will know when your payments will go up and how much they will increase to.
• When you have more disposable income you can pay more on the principal mortgage loan in order to reduce the life of your FHA Mortgage.

The FHA Growing Equity Mortgage is a good planning tool for any individual or family who wants to purchase a home now that fits their needs rather than purchase what they can afford now and then sell and move again in the near future. It is also a good type of loan for families who otherwise would not be able to qualify for a loan to purchase a home now but expect to have a higher income in the future.

For more information about the FHA Growing Equity Mortgage.