FHA Loan Benefits

FHA insured mortgages are some of the best kinds of mortgages available. This is because they can help more people into the home buying market. Check out the list below to understand some of the most basic benefits of an FHA mortgage. Easier to Qualify for – because they’re backed by the federal government lenders are more likely to give you the kind of loan that you need. Low Down Payment – FHA insured mortgages only require a 3% down-payment which makes it easier for people to own homes. Additionally the 3% can come in the form of gifts, unlike many other loan programs.  You can even have the seller provide your required 3% down payment as a gift from their equity!  While this sounds great, HR 3221 recently passed and was signed into law, banning the seller funded down payment assistance programs with FHA.  With this in mind, there are also other 100% programs available that might fill this void.  Contact us for details. Lower Credit Borrowers Qualify – because FHA insured loans are backed by the government those with a poor credit history have an easier time getting this kind of loan.  While FHA has never had a credit score requirement, many lenders have imposed mininum credit score requirements, typically between 580-620.  If you are below this level you might want to consider using our credit repair service.  Contact us for more details!  Better Interest Rates – with the backing of the government these loans typically have a better interest rate than most traditional mortgage loans. Better Home Stability – the FHA has programs designed to help homeowners keep their homes during hard times. They will work with you to help your home from falling into foreclosure. Always try to work out problems with your lender before the situation becomes dire.

Quick Links Apply for a FHA Loan FHA Loan Checklist Common FHA Questions FHA Qualifications Benefits of FHA Loans How FHA Loans Work