Don't want to contribute more than 3.5% for a down-payment?Does your credit history have blemishes?Is your debt to income is higher due to extraordinary circumstances?
Low Down Payment
- FHA home loans are mortgages which are insured by the Federal Housing Administration (FHA), allowing borrowers to get low mortgage rates with a minimal down payment.
Most residential loans require you to secure the loan with a significant down payment of 5 to 10 percent, while FHA loans require as little as 3.5 percent and up to 5, 10, or 20%.
Loans With Added in Closing Costs
The cost of a house is a significant purchase by anyone’s standards. But other costs, such as closing and finance costs, as well as repairs and energy efficiency can easily tack an additional several thousand dollars onto the closing costs of your home. Many closing costs may be incorporated into an FHA loan, and closing costs are regulated by the office of Housing and Urban Development.
If you have less than perfect credit, securing a loan may be difficult. Most lenders won’t provide a mortgage to you for five years after a foreclosure, whereas you may be eligible for an FHA loan a mere three years after a foreclosure. Bankruptcy may disqualify you for
a FHA, but you may be eligible for an FHA loan two years after filing.
Affordable Mortgage Insurance
Because the FHA is guaranteeing your home loan, you’ll be able to tap into favorable mortgage insurance rates that are usually much cheaper.
To learn more about FHA loans visit:
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