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FHA Home Loan Program
7 Advantages To FHA Loan Financing!
The FHA Home Loan Program is becoming the most popular way to finance the purchase of homes across the nation. It has always been popular but have become more so in the last couple of years because of the problems in the housing market.
Conventional loans are becoming harder to get and the down payment required is 20% or more. Another problem with conventional loans is that credit has tightened and you need higher credit scores. This is why the FHA Home Loan Program looks so attractive to current homebuyers.
Here are some of the advantages of a FHA Home Loan
1. You Can Get Qualified Easier.
FHA does not directly lend money to the homebuyer, what they do is insured the mortgage. This will give lenders the incentive to give better loan terms and make it easier for you to get qualified.
2. You Do Not Have To Have Great Credit.
Today’s housing market requires you to have very good credit to qualify for a conventional loan. You can qualify for a FHA Home Loan with less than perfect credit scores, even as low as 580 credit score. But most lenders will want a credit score of 620 or above. If you have had a bankruptcy in the past you have a better chance of getting a mortgage with the FHA Home Loan Program than a conventional loan.
3. Low Down Payment.
This is probably is the best advantage to a FHA Loan Financing. You only need a 3.5% down payment versus 20% or more for conventional loans. You really do not even have to have the down payment, it can come from a family member, employer, or charitable organization. Conventional loans do not allow this.
There is an exception to the 3.5% down payment. Currently you only need $100 for a down payment if you buy a HUD foreclosed home.
4. Cost Less To Have A FHA Loan.
FHA Home Loan Mortgage has very competitive interest rates because they are insured by the Federal government. You need to compare their rates with rates of conventional loans.
5. What If You Can Not Pay Your Loan?
FHA has been around a long time, since 1934. They have programs available to you that will help you save your home if you happen to run into hard times. And there are a lot of hard times going around in today's tough economic times. They can help you to avoid foreclosure.
6. Condominium Home Financing.
FHA loans can be used not only to purchase existing single family homes but also new construction homes, 1-4 family homes, and condominium homes. It is very hard to get financing for condominium homes with conventional financing.
7. Non- Occupant Co-Buyers.
One of the biggest advantages of FHA loans is that you can have a non-occupant co-buyer.
This is a person who is willing to cosign with you, who says they will help make the mortgage payments if you cannot.
They do not need to live with you and just need to live in the United States.
Their income and debts are blended with yours to help you qualify for the home you want.
The FHA Home Loan Program may be your best and only chance to get your dream home!
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