Are FHA loans only for first time home buyers?

Question

I am looking to buy a condo now, however when I choose to purchase a house in a couple years I dont' want to miss out on incentives for first time homebuyers at that time because I am buying a condo now.

Answer 1

FHA loans are not only for first-time home buyers. But an FHA has to be for your primary residence so you can only use one at at time.

If you qualify for for an FHA loan (check the FHA website for guidelines) you shouldn't have a problem getting one now and when you want to move (assuming you still qualify).

But I recommend checking out all of your options before you decide on your loan. Do some research into the difference between an FHA and a conventional loan (which usually is a lower interest rate) and see if you qualify.

Ask around for referrals to mortgage professionals that your family and friends have used and they've been happy with. Trust me on this. Referrals are the best friend of a mortgage banker and any honest and good mortgage professional out there gets most of their business from referrals.

You didn't ask for specific questions about what first-time home buyers should look for, so I won't waste your time here with a list, but I'll give you a link the Quicken Loans First-Time Home Buyers Guide (I work at Quicken Loans). Check it out. You might find some useful info.

Good luck with your condo.

Answer 2

You can use an FHA loan as long as you and the home qualify. You will not be reducing your options down the road by closing an FHA loan on your condo today.

I read other answers to this question, and most of the advice seems solid save for the notion that there may be better options for you. There may be different options, but FHA is very safe.

There are some non-profit agencies which will give you a "gap loan" or some sort of grant to assist with your down payment to help you qualify for conventional, non-FHA financing. However, almost every one of those gao loans or grants must be repaid eventually, and most accrue interest. I have closed several FHA loans with charitable contrbutions that covered both down payment and closing costs and they do not require repayment. There are less people involved, less interest paid, and a far lower likliehood of future problems. I have a client right now who chose conventional financing with two gap-loans from non-profit orginizations. Two years after purchasing her home, she refinanced. The title agency involved with that transaction missed one o the two gap loans and allowed her to close a new loan that didnt pay it off. She now owes more than the value of her home. With FHA loans, there are far more safeguards in place (you know the government wants to cover its own behind) and you will not experience those kinds of very scary faux pas in the future.

Answer 3

No FHA loans are for anyone, but it must be their primary residence. There may be loans better for 1st time buyers than an FHA loan. Consider taking a free seminar from a local non-profit agency in your area who can explain the process and your choices better. It's well worth the time.

Answer 4

FHA is not solely for first time buyers although you can generally only have one FHA loan at a time.

Answer 5

FHA LOANS FOR COUPLES WHO ARE SEPARATED

Answer 6

just check out the links for your answer:


http://www.mortgagerefinancingatlowrate.com/

http://www.apply4less.com/