"I’m with the government and I’m here to give you free money."…said no one ever.

In this installment of “Barrett’s Corner”, I- with the help of an awesome Mortgage Broker- answer the question “What is an FHA loan?”  

If you have ever bought a home and didn’t pay all cash then chances are you have spoken with a mortgage lender a time or two.  One things you will learn quickly is that there are dozens of options out there to choose from for financing your home purchase.  In the mortgage industry, they call these options “loan products”.  For example, you can go 30 yr, 15 yr, 10 yr, 5 % down, 20% down w/no PMI, 3% down w/PMI wrapped into the interest rate, jumbo, wrap, 7/1 ARM, 3/1 ARM, conventional, FHA, VA, USDA, and more!  It’s like going to Cabo Bob’s, choosing your ingredients,  and building a huge mortgage burrito.   So many options!

Most home loans that are given are conventional.  However, ever-increasing in popularity are what some call “government loans”.  Those are FHA, VA, Rural, and others.  Talking with people all the time about real estate, I have learned that many are under the impression that these are loans funded by the U.S. Government.  Nope!

Photo courtesy of WikiCommons

In this short video, Gena Caudle (GoodLife Mortgage) breaks down what is probably the most popular of these government loans- the FHA loan.  Enjoy!

(If the video doesn’t show up below, click here to see it on my YouTube Channel!)

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