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5 Myths About Using FHA Loans To Buy Huntsville AL Homes Debunked

By: Huntsville Real Estate Expert Mike Manosky On June 28, 2011

FHA loans are mortgages issued by qualified lenders, including traditional lenders like Citigroup and Wells Fargo, and insured by the Federal Housing Administration (FHA).  The popularity of these loans are skyrocketing and for good reasons.  They feature low down payments, low closing costs and are easier to qualify for.

Despite this popularity, there are many misconceptions surrounding FHA loans.  Here are just a few myths and the facts behind them.

Myth #1: FHA only loans small amounts to buyers of Huntsville AL homes. 

Fact:  To help stabilize the real estate market, the government recently raised the maximum loan amount from its original cap of $362,790 to $793,750. The FHA loan amount a buyer can borrow varies by state and county.

Myth #2:  FHA loans are exclusively for lower-income borrowers. 

Fact:  FHA loans are available to everyone. There are no maximum income restrictions.  Potential borrowers must verify income and assets to ensure they can afford the loan.

Myth #3:  FHA loans are exclusively for first-time buyers of Huntsville AL homes.

Fact:  Whether Huntsville AL home buyers are making their first home purchase or their twentieth, they can potentially qualify for an FHA loan.

Myth #4: FHA loans are affiliated with the low-income housing program.

Fact:  FHA loans have nothing to do with the Section 8 Housing Program or any other low-income or subsidized housing programs. FHA loans are simply mortgages insured by FHA.

Myth #5: FHA loans are risky. 

Fact:  FHA loans are often easier to obtain, but that does not make them riskier.  The FHA requires full documentation of borrowers’ income and assets to ensure they can afford the loan.

If you’re ready to look at Huntsville AL homes to buy, whether you’ll be using an FHA loan or a non-FHA loan, I can help you find your perfect home.  Give me a call today at 800-803-0053, 256-508-0211 or email me at mike@movetohuntsville.com to get started.

Having lived in the Huntsville AL area for most of his life, Mike Manosky understands exactly what makes this community special.  In fact, those who know him well will tell you he carries the same traditional values and focus on the future as Huntsville. 

Mike brings with him a keen eye for the details of buying or selling a Huntsville AL home and seemingly boundless determination and energy, which is why his clients benefit from his unique brand of real estate service. Rooted in Tradition, Focused on the Future – Mike Manosky will help make the most of your Huntsville AL real estate experience. Give him a call today, 256-508-0211 Direct or 800-803-0053 Toll Free, and discover the difference he can make during your family’s move.

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