Are you looking to buy a home, but might be worried that your credit score or lack of a downpayment might impact you? This a program that could be a great option for you.
FHA Home Loans are mortgages that are backed by the Federal Housing Administration that have lower qualifying standards and rates than conventional loans, along with a lower downpayment of 3.5%.
For many people, this is an amazing program to help them become homeowners, especially if they may not qualify for other types of loans. Below are a list of some of the common questions people run into about FHA loans.
Yes you will, but it will be at a much lower rate than other loan programs out there. FHA loans require 3.5% down as a payment.
Yes, FHA loans require that the purchaser have mortgage insurance on the loan. While this might seem like a bad thing, there are ways to reduce the rates of MIP, including using a 15 year mortgage term, or making a downpayment of at least 5%.
FHA loans allow the individual to have a higher debt-to-income ratio, or DTI. Officially, the FHA maximum DTIs are as follows:
Think an FHA loan might be a good solution for you? Let’s find out!