Advantages of an FHA Loan

The Federal Housing Administration has many benefits that make the loan process much simpler and more affordable for American families. This is especially true for families who would not otherwise qualify for a conventional loan. Here are some of the many benefits extended to you through the FHA.

Easy Qualification

The FHA realizes that not everyone has perfect credit, and that it can be hard to raise your score once it has dropped. Low credit scores are the number one reason why many Americans cannot afford to buy new homes, even if they have been financially stable for a while. The FHA seeks to help those who have less than perfect scores by being much more lenient towards the credit history.

Low Down Payment

Private lenders require anywhere from 5 to 20% for a down payment on a new property before they issue the loan. With housing prices as high as they are right now, this can add up very quickly, making it impossible for Americans with little capital saved up to afford new homes. The FHA has lowered this amount to accommodate more people. It is possible to obtain an FHA loan with a down payment as low as 3% of the cost of the property. The FHA will even accept the down payment from your employer, charitable organization or friend if you can’t afford to pay the cost yourself.

No Private Mortgage Insurance

There are some rare conventional loans that can be obtained with 3% down, but you will end up making up for it by paying costly private mortgage insurance (PMI). The FHA insures your loan for you, so even though you will receive a low down payment, you won’t be required to purchase any additional PMI.

Streamline Refinancing

Once you have your FHA Loan, refinancing for a lower interest rate is simple. The FHA offers a streamline refinance which requires no additional paperwork or “out-of-pocket” expenses. If there are any fees associated with closing the new mortgage, you have the option of rolling the expenses into the cost of the new loan.

Simple Pre-approval

Pre-approval for an FHA Loan is incredibly fast and easy. Take a minute to fill out our online form and we’ll have you pre-approved for free!

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