Depending on your credit score and the amount you have saved for a down payment, the rates for an FHA loan might be lower than a Conventional mortgage. An FHA home purchase only requires a 3.5% down payment—and there may even be programs to help you come up with that portion as well.
You don’t have to be a first-time homebuyer to qualify for an FHA home loan, though you can only have one FHA home loan at a time.
Partially insured by the Federal Housing Administration, these mortgages are available to all qualified buyers with the only restriction being that you can’t have more than one FHA loan at a time. FHA loans do have a lifetime mortgage insurance requirement, but in return they enable lenders to approve borrowers with lower credit scores and/or lower down payments. You can choose between a fixed or variable interest rate, and from a variety of term lengths.
Benefits of this type of mortgage include:
If you don’t like the mortgage insurance requirement that comes with an FHA loan, and your credit is good enough to qualify, you may want to consider a conventional mortgage instead.
To get started with your FHA mortgage application, work with a local lender familiar with FHA home loans—contact your nearest location to learn more!