If you are a first-time homebuyer or have a less than perfect credit score, the FHA loan may be a great option for you (although there are credit limitations that may still apply). The FHA understands that not every one looking to buy a home has a perfect credit score. This is a good option for people with low equity in their home, which is the difference between how much you owe and how much the house would be appraised for. If you have a higher debt to income ratio, this loan might be great for you.
This government-backed loan enables people with lower income to qualify for a mortgage that they would typically have trouble qualifying for. In recent years these loans have become very popular, since the requirements tend to be less strict compared to conventional loans.
If putting a large amount down on a home scares you, this loan program offers lower down payment options that are very reasonable and attainable. In some cases, the younger buying generation is loaded with student loan payments. This is why the FHA loan is a favorite for millennials and first time homebuyers.
With an FHA loan, you can pay off your mortgage at any time without pre-payment penalties. Adjustable rate mortgages are available to you.
All fees are disclosed in writing upfront so when it comes to this loan, there are no hidden fees.
If you still aren’t sure if this loan is right for you or you are curious about other options, you can find out about more options here.
If you think the FHA is a perfect fit for you, you might be right. If you’re ready to take the next step you can apply now!