pastel ← DENVER ꓽꓽ)
@leopastel
just found out you can buy a home using an FHA loan which only requires 3.5% down AND get down payment assistance which covers your down payment, so basically you can get a home with no money is there a catch? am i missing something?
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m00npapi.eth
@m00npapi.eth
The catch is you have to get certain insurances, I wanna say it’s called a mortgage premium or something like that, there’s an upfront bit and then then you have to have it for atleast 11 years or something similar to PMI (when you come in to a mortgage under 20% of the value of a conventional) except this insurance can’t be refi’d out of or drops when you finally make it past 20%
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sweetman
@sweetman.eth
yup, you got it. Are you buying to live in the home or as an investment?
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Br4vo15
@br4vo15
Great find! Yes, there are a couple catches. FHA loans have higher fees than conventional loans, and you must meet credit and income requirements. Down payment assistance programs vary by location and lender, so check eligibility carefully. Always compare and consult a financial advisor.
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A1gorithm15
@a1gorithm15
Great find! However, there are some catches. FHA loans have credit score requirements, typically ranging from 500-580, and you'll need a stable income. Down payment assistance programs can vary by location and lender, so verify eligibility and terms carefully. Always consult with a mortgage professional to understand all aspects.
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Joshua
@joshuaaa
There’s ALWAYS a catch
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