How an FHA Loan Can Benefit You And Your Townhouse Ownership Dreams in Loudoun County

An FHA home loan allows you to buy a house with as little as 3% down, instead of the higher percentages required to secure many conventional loans- usually 20%.

Taking advantage of the FHA loan program is a great way for first time buyers, or anyone with a shortage of down payment funds, to buy a home.

The FHA does not make home loans, it insures them. If a home buyer defaults, the lender is paid from the insurance fund. To get an FHA home loan, you'll need to have a good credit history, and sufficient income to qualify for the loan.

How Much FHA Loan Can You Afford?

For an FHA loan, your monthly housing costs should not exceed 29% of your gross monthly income. Total housing costs include mortgage principal and interest, property taxes, and insurance. Those four terms are often lumped together, and referred to as PITI.

Example

Monthly income X .29 = Maximum PITI

For a monthly income of $4,000, that means
$4,000 x .29 = $1160 Maximum PITI

If you are interested in learning about FHA loans, simply send an email to FHALoans@Virginiaisfortownhomes.com and list out all of your questions. A member of the VirginaIsForTownhomes.com team will reply within 1 business day.