What You Should Know About FHA Loans
If you are a first time home buyer or if you just don't think you can cough up 10% of your loan amount for a down payment it may be worth your while to look into an FHA loan.
FHA loans are loans insured by the federal government. These loans are often sought after by first time home buyers or those that may not have a lot of money to put down on a home because only 3% is required for the down payment. The interest rates are determined by your credit rating but are often more reasonable than that of a conventional loan if your credit isn't that good.
Qualifying for an FHA loan is just as much work as qualifying for any other loan. The difference though is that FHA guidelines for ratios, total housing costs aren't nearly as stringent as with conventional loans. This fact makes owning a home more achievable for more people.
There are a few issues to remember when dealing with a FHA loan. You cannot own two homes using FHA loans. Meaning you can?t rent out a property which you secured using an FHA loan and then go purchase another home using an FHA loan. Your home must be owner occupied. Another drawback would be that there are limits to the total loan amount. If your home is high priced you may not be able to qualify for an FHA loan.
Everyone deserves to be a homeowner no matter what the need or situation. Thankfully with loans such as FHA loans owning a home for some is finally becoming a reality.
Our Recommended FHA Mortgage Lenders:
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Free Gov't Grants and Loans
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