- FHA Loan:
FHA mortgage loans are issued by federally qualified lenders and insured by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development.
FHA loans are an attractive option, especially for first-time homeowners:
- Generally easier to qualify for than conventional loans.
- Lower down payment requirements.
- Cannot exceed statutory loan limits.
The biggest advantage of FHA loans in todays market is the credit score and depth requirements. Conventional loans require higher scores and in some cases lower debt to income ratios. You can purchase a home with as little as 3.5% down payment and have average or below average credit.
Actually you do not need to be a First Time Home Buyer to qualify. You can only have one FHA loan at a time though.
For bigger cities and metro areas it is one of the lowest down payment programs for someone who is looking to purchase a home. VA loans allow for a zero down payment but you would have to be a qualified Veteran. If you have above average credit you may qualify for a 3% down payment Conventional Loan. Otherwise this this loan be the right one for you. As a mortgage Broker we work with many wholesale companies that have a niche product for lower credit scores. If you have less than average credit you may want to get information on how to increase your credit scores. For FHA tips, FHA Questions, You can reach us by emailing at email@example.com or call 877-818-4603.