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The list below outlines some advantages of FHA loan programs.
Easier to Qualify for – Backed by the federal government, FHA loans allow for overall greater flexibility.
Low Down Payment – FHA-insured mortgages only require a 3.5% down-payment. Additionally, the entire 3.5% can come in the form of gifts, unlike many other loan programs.
Low Credit Borrowers May Qualify – Borrowers with low FICO scores may still qualify and still receive a great rate. The FHA typically requires 12 months of clean credit history with no derogatory payments.
Better Interest Rates – With the backing of the government, these loans typically have a slightly better interest rate than most traditional mortgage loans.
Non-Occupuying Co-Borrowers - The FHA will allow a family member to co-sign without having any minimum down payment or income requirments by the primary occupant.
Lower Monthy Mortgage Insurance - FHA loans require less monthly mortgage insurance.
Better Home Stability – The FHA has programs designed to help homeowners keep their homes during hard times. FHA will work with you to help your home from falling into foreclosure.
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