Top 5 Reasons You Should Consider an FHA Home Loan04/13/2010 5. Getting Back On Your Feet Times have been tough for many of us who became victims of the housing market bubble. Foreclosure is something that many individuals had to deal with, but they are now just rebounding and looking to get back into a home. An FHA home loan allows you to qualify for a mortgage in as little at 3 years, as opposed to the 5 for a conventional loan. 4.Easier to Qualify For the Loan The FHA home loan program is a government run program, it insures lenders so that they may feel confident lending to you even if you have lower a lower credit score. This translates into it being easier for you to qualify for the loan meaning the first time home buyers can secure that dream home. The FHA is looking for a credit score between 580-620. While you do need some form of credit, this is less than what a conventional loan requires. You should be building your credit now by using and paying off your credit card each month. Student loans and payment is another great way to increase your credit score. FHA home loans usually offer a lower down payment than a conventional fixed rate mortgage. The down payment can be a low as 3 percent of the cost of the home. This means that it is much more realistic and affordable for first time home buyers to get into the house they need. That 3 percent down payment is still eligible even if it came in the form of a gift from church, family, or charity. The interest rates on a FHA home loan are competitive with conventional loans. The better your credit score, more cash you have on reserves and down payment percentage will all affect your interest rate. |
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