An FHA mortgage is backed by the Federal Housing Administration in case you default on your loan. With a conventional mortgage, lenders do not have that same guarantee. An FHA mortgage requires a minimum down payment of 3.5%. With a conventional mortgage, the minimum down payment is 5% if you are purchasing a primary residence. There is usually an upfront mortgage insurance payment of 1.5% of the purchase price with a FHA mortgage. (Typically this is rolled into your loan amount.) The upfront payment is in addition to your monthly Private Mortgage Insurance premiums. With a conventional loan, there is no upfront payment and you can stop paying the monthly premiums when you reach 20% equity in your home. For more information on the different loans available please contact a lender or financial institution. If you need help locating a lender please call a local REALTOR®.

While most appraisals focus on determining the value of a home, an FHA appraisal also reviews the condition of the home in order to determine whether the property meets the guidelines established for the approval of FHA insured loans. The FHA appraiser will inspect the most important aspects of the home including the roof, attic, basement or crawl space, furnace, electrical wiring and hot water heater for visible damage and to inform all parties of any required repairs. The appraiser will also check the interior and exterior surfaces of homes that were built before 1978 in order to eliminate exposure to lead-based paint. The appraiser will order that any areas with peeling, cracking or chipping paint are safely repaired and repainted. FHA appraisers will also check to make sure that there are no safety hazards in the home such as broken doors, windows or stairways without handrails. These are some of the things a FHA appraiser will check for. For more information, visit with a lender. Please note: A FHA appraisal does not and should not take the place of a whole house inspection performed by a licensed and certified home inspector.

Title insurance is insurance against financial loss from defects in the title to real estate. It's purpose is to protect an owner's and a lender's financial interest in the property against loss due to title defects, liens and other matters.

Please contact Sherri Barnes, Executive Officer of the Hutchinson Board of REALTORS® at 620-663-4861.

If you have a problem with your REALTOR® you should contact your REALTOR'S® Supervising Broker at his or her office. If you have further problems, please check out the "Before Filing A Complaint" page under the "Code of Ethics" tab on our website.