FHA insured mortgages are some of the best kinds of mortgages available for first time home buyers. 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. Requirements for Employments, Assets, and Credit History are generally more lenient than with other loan programs.
Low Down Payment – FHA insured mortgages only require a 3.5% down payment which makes it easier for people to own homes. Additionally the 3.5% can come in the form of gifts or down payment assistance programs, unlike many other loan programs.
Lower Credit Scores Available – FHA Programs allow for lower credit scores than Conventional loans - and non-traditional credit histories are allowed with our FHA Programs.
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. The 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.