December 2, 2021

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FHA Home Loan Options For New Borrowers

FHA home loan options for new borrowers and first-time home buyers vary. There’s a misconception that FHA mortgages are only for first-time borrowers, and another misconception that FHA loans somehow favor first-time borrowers with better rates, terms, or other factors.

But the truth is that FHA mortgages are NOT just for first-time home buyers. And there’s another truth-the FHA loan program itself does not offer more favorable terms for first-timer buyers than for anyone else. All applicants who are financially qualified can apply for an FHA loan or refinance loan.

That leads to some confusion among borrowers who see lenders offering first-time buyer incentives. The fact is, those incentives either come from the participating lender and not the FHA, or from a state/local program designed to assist those who have never purchased a home before.

So what kind of options are available for a first-time home buyer when looking at FHA mortgage options?

You can get information on home buying programs broken down by state from the FHA official site. These programs are not administered by the FHA but the state-by-state list of programs is there to help you find non-FHA sources of assistance near you.

First time home buyers do well to also take advantage of the FHA/HUD offer of a referral to a local, HUD-approved housing counselor who can help with pre-purchase planning, budgeting issues, credit, and more. If you aren’t sure where to begin with an FHA mortgage or any other type of home loan, this can be a very important resource.

First-time home buyers should also have a look at the official site of the government’s consumer watchdog agency, the Consumer Financial Protection Bureau, which has a section dedicated to mortgages. Knowing important details about interest rates, mortgage insurance, appraisals, and home inspections will make you much better prepared to make informed choices about your new FHA home loan.

Joe Wallace - Staff Writer

By Joe Wallace

January 19, 2017

Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for for (8) years and is currently the Associate Editor for

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About was launched in 2010 by seasoned mortgage professionals wanting to educate homebuyers about the guidelines for FHA insured mortgage loans. Popular FHA topics include credit requirements, FHA loan limits, mortgage insurance premiums, closing costs and many more. The authors have written thousands of blogs specific to FHA mortgages and the site has substantially increased readership over the years and has become known for its “FHA News and Views”.

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