Paramus Mortgage – The Benefits of FHA Loans
Mortgage and real estate trends are ever changing, which can make managing financial decisions difficult.
However, one thing that remains apparent from state to state is why the FHA Loan is so popular – and its popularity doesn’t seem to be diminishing in 2017.
It doesn’t matter where you are in the country, whether it’s New Jersey, Florida or DC, FHA Loans provide borrowers who have little savings and less than perfect credit the opportunity to purchase a home.
Since FHA requirements are so different than other mortgages, many borrowers have qualified for FHA Loans with credit scores as low as 580. This is 100 points lower than what is usually required to qualify for a Conventional Loan.
In addition to lower credit score requirements, borrowers who choose an FHA Loan option don’t need to put down more than 3.5% as a down payment. Although mortgage insurance will probably be required with a down payment that small, the interest rates on most FHA Loans are typically lower than most conforming loans.
FHA Loans are also assumable, which means they can be taken over from the seller when a house is purchased. This can save a lot of time and energy but is not one of the most well-known perks of an FHA Loan.
While it seems like you can’t lose by choosing an FHA Loan, with its low credit, small down payment requirements, it is important to consider every aspect of your financial situation – your goals and all of the loan options that are available to you before making a final decision.
At Get A Rate, we know that no matter how much information you find on the internet, the search for the perfect mortgage and most competitive rate isn’t as easy as it seems. But we’re here to change that.
We are here to help guide you down the best financial path, with a mortgage product and program that is customized to fit your exact circumstances, whether or not that’s an FHA Loan.
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