We Believe in Affordable FHA Mortgage Loans in Bloomington
At Union Savings Bank, we do everything we can to help families own a home. FHA loans are a great way to make your dream of a new home happen. You can count on our loan officers to guide you through every step of the home buying process and treat your money as if it’s their own.
What is an FHA Loan?
The FHA loan was created by the Federal Housing Administration in 1934 to make homeownership more accessible for families. This type of loan is an attractive option because it features low down payments, flexible credit requirements, and greater purchase power. If funds are limited, an FHA mortgage can help a homebuyer finance up to 96.5% of their home’s purchase price.
Is an FHA Loan Right For Me?
If you’re looking for a home mortgage, an FHA loan may be right for you. Let’s take a close look at several of the many benefits of financing a home through an FHA loan. This type of loan is a great option for you if:
- You do not have a 20% down payment.
- You have been gifted money that you would like to use for your down payment.
- Your credit score isn’t the best.
- You would like a fixed interest rate.
- You have had a recent bankruptcy, foreclosure, or another serious financial burden.
- You plan on paying off your house early and don’t want to face any penalties.
The Benefits of an FHA Loan
Less Money Down
FHA loans only require a 3.5% down payment for the purchase of a home. An FHA loan can give you the chance to spend less time saving for a down payment and more time building equity and enjoying your new home.
Relaxed Credit Score Requirements
If your credit score is less than excellent or good, you can still (potentially) qualify for an FHA loan (in some cases a credit score as low as 580 is acceptable on an FHA Loan.)
Gifted Down Payments are Accepted
Monetary gifts from your friends and family may be used toward your FHA loan down payment or closing costs.
Competitive Interest Rates
Since FHA loans are backed by the government, they typically offer better interest rates than other mortgage loans. Even if you have less than desirable credit, you can benefit from a competitive interest rate.
No Prepayment Penalties
Fees that arise when you pay off your home too quickly are known as prepayment penalties. With an FHA loan, you can enjoy the freedom of paying off your home early without any consequences.
Seller Paid Closing Costs
FHA loans allow sellers to pay up to 6 percent of the loan amount to cover buyer closing costs. This can give you the chance to focus all of your efforts on saving for your down payment.
At Union Savings Bank, we work hard to make homeownership possible without all the stress and extra fees.