FHA insured home loans can be used for a variety of properties and purposes. Those who apply and qualify for FHA loans can purchase a home for up to four families, a condo or even a manufactured home on a permanent foundation.
News, updates, and explanations to keep you informed.
Why Should I Consider an FHA Loan?
There are plenty of reasons to consider an FHA loan. What are the advantages to applying for an FHA home loan instead of a conventional mortgage? Why apply with the FHA?
FHA insured home loans can be used for a variety of properties and purposes. Those who apply and qualify for FHA loans can purchase a home for up to four families, a condo or even a “manufactured home” on a permanent foundation.
Some mistakenly believe there is a maximum income limit on FHA loans, which may disqualify them from applying, but this is not true. While some down payment assistance programs or secondary financing programs associated with FHA loans may have income limits, the basic eligibility requirements have MINIMUM income guidelines, not maximums.
FHA loans are an excellent choice for those with less than perfect credit. The FHA guarantees the home loan, making it more attractive for a lender to work with you. FHA loans have lower down payments than other types of loans; do some comparison shopping with FHA loans and conventional mortgages and you’ll soon learn how an FHA home loan could work to your advantage in the right circumstances.
Because an FHA mortgage is insured by the government, the loans are often more competitive but it’s important to know the government does NOT set the interest rates on FHA home loans—to get the best value you should shop around for the right lender and the right interest rate before settling on a particular loan.
There are other reasons to consider an FHA mortgage aside from the initial credit and cost issues; the FHA has a history of working on the homeowner’s behalf. From foreclosure avoidance programs such as HOPE For Homeowners and the Making Home Affordable program to natural disaster relief for FHA borrowers in crisis, the FHA is clearly interested in helping those who take FHA mortgages keep the homes they buy.