FHA Home Loans are government insured home mortgage loans that are not as stringent as conventional loans and offer more flexible lending requirements. FHA Loans are available with both fixed rates and adjustable rates, however due to their flexible nature the interest rates on them tend to be somewhat higher and a borrower might also have to pay monthly Private Mortgage Insurance (PMI) premiums.
These Federal Housing Administration Loans are insured by the FHA and have an easier qualification process due to less strict credit and down payment requirements than the conventional type of home loans.
The major benefits of these loans are as follows:
• Lower Down Payments: You can qualify for an FHA mortgage with a down payment as low as 3.5%. However the interest rates might be higher than the conventional loans.
• Lower Credit Benchmarks: One of the best benefits of FHA loans is that you can qualify for them even with a bad credit history.
• Best for Refinance: Many borrowers with newly adjusted ARMs on the higher end look to refinance their mortgages into Fixed-rate FHA mortgages.
Requirements
• Amount of the Loan: Maximum mortgage limits under FHA loans vary by the state.
• Down Payment: Minimum down payment of 3.5% is required.
• Condition of the Property/Home: One of the major guidelines governing the FHA loans states that the home being purchased meets certain conditions and gets appraised by an FHA approved appraiser. Also, FHA loans are available only if they are to be used to buy a home that serves as the primary residence of the borrower.
The Bottom Line
An FHA home loan will be a great option for you if you have less than perfect credit score or limited cash for down payment.
All Western Mortgage is an FHA certified lender and if you don’t have a perfect credit or enough cash for making 20% down payment, we’ll be happy to help you in providing a loan so that you can purchase a place, which you can call home.
These Federal Housing Administration Loans are insured by the FHA and have an easier qualification process due to less strict credit and down payment requirements than the conventional type of home loans.
The major benefits of these loans are as follows:
• Lower Down Payments: You can qualify for an FHA mortgage with a down payment as low as 3.5%. However the interest rates might be higher than the conventional loans.
• Lower Credit Benchmarks: One of the best benefits of FHA loans is that you can qualify for them even with a bad credit history.
• Best for Refinance: Many borrowers with newly adjusted ARMs on the higher end look to refinance their mortgages into Fixed-rate FHA mortgages.
Requirements
• Amount of the Loan: Maximum mortgage limits under FHA loans vary by the state.
• Down Payment: Minimum down payment of 3.5% is required.
• Condition of the Property/Home: One of the major guidelines governing the FHA loans states that the home being purchased meets certain conditions and gets appraised by an FHA approved appraiser. Also, FHA loans are available only if they are to be used to buy a home that serves as the primary residence of the borrower.
The Bottom Line
An FHA home loan will be a great option for you if you have less than perfect credit score or limited cash for down payment.
All Western Mortgage is an FHA certified lender and if you don’t have a perfect credit or enough cash for making 20% down payment, we’ll be happy to help you in providing a loan so that you can purchase a place, which you can call home.
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