Why should you choose an FHA Loan?

The Federal Housing Administration has been helping place Americans in homes for over seventy years. Today the program is just as strong as ever, extending benefits to those who may not otherwise qualify for a conventional loan. Here are a few reasons why you should consider an FHA Loan for you next house.

Easier to Qualify

With a conventional loan, it is incredibly difficult to borrow money if you have less than perfect credit. Even if you are able to qualify, you may end up paying much more because the lender will view you as a risky investment. While you will still have to qualify for an FHA Loan based on your credit score and income level, the standards are much more lenient. Even if you filed bankruptcy in the past, you might still be eligible for an FHA mortgage.

There is a Low Down Payment

The cost of a conventional loan can range anywhere from 5 to 20% of the total cost of the house. This makes it incredibly hard for young couples and people without savings to afford a new house. With an FHA Loan, the down payment can be as little as 3% and can come from any source.

FHA Loans Cost Less

The overall cost of an FHA Loan is much less than a conventional loan because you will be able to get a really competitive interest rate. In addition to the lower monthly payments, you also won’t be required to pay private monthly mortgage insurance because the FHA already insures the loan for you.

Refinancing is Easy

Even if you end up with an interest rate that is higher than you’d like, you have the option to apply for a streamline refinance in the future. The streamline refers to the ease and affordability of obtaining the new loan. When you refinance for a lower interest rate, you won’t have to supply additional paperwork or incur any out-of-pocket expenses.

Help Keep your Home

The FHA does not want you to lose your home, which is why they have created programs to help you avoid defaulting on the loan and going into foreclosure on the property.

Get Started Today!

Getting pre-approved has never been easier! Just take a minute to fill out our online form and we’ll have you approved for free in minutes!

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