FHA programs are in high demand due to their flexibility, more lenient view of credit, and low down payment. They are perfect for refinancing or purchase. Depending on your credit score and the amount you have saved for a down payment, the rates for an FHA loan might be lower than a Conventional mortgage. An FHA home purchase only requires a 3.5% down payment—and there may even be programs to help you come up with that portion as well.
You don’t have to be a first-time homebuyer to qualify for an FHA home loan, though you can only have one FHA home loan at a time.
What is an FHA loan?
Partially insured by the Federal Housing Administration, these mortgages are available to all qualified buyers with the only restriction being that you can’t have more than one FHA loan at a time. FHA loans do have a lifetime mortgage insurance requirement, but in return they enable lenders to approve borrowers with lower credit scores and/or lower down payments. You can choose between a fixed or variable interest rate, and from a variety of term lengths.
Why choose an FHA loan?
Benefits of this type of mortgage include:
- Can qualify with a lower-than-average credit score
- Low down payment options
- Fixed or variable interest rate
If you don’t like the mortgage insurance requirement that comes with an FHA loan, and your credit is good enough to qualify, you may want to consider a conventional mortgage instead.
Contact us to learn more about FHA loans!
To get started with your FHA mortgage application, work with a local lender familiar with FHA home loans—contact your nearest location to learn more!