Why Choose an FHA Loan?

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FHA Loans make a lot of sense for many borrowers. Especially if one or more of the following apply to you:


  • You're a first time Homebuyer
  • You don't have a lot of money to put down.
  • You want to keep your payment as low as possible.
  • You're worried about qualifying due to credit issues
  • You had a recent bankruptcy
  • You have a manufactured or mobile home

If any of these things describe you, then an FHA loan may be right for you. Why? FHA-insured loans offer many benefits and protections that you won't find in other loans including:

Lower cost: FHA loans have competitive interest rates because the HUD insures the loans for lenders. This allows the lenders to take the risk and be more competitive when lending.


Smaller down payment: FHA loans have a low 3% down payment and the money can come from a family member, employer or charitable organization as a gift. Most other loan programs don't allow this.


Easier qualification: Because FHA insures your mortgage, lenders may be more willing to give you loan terms that make it easier for you to qualify.


Less than perfect credit: You don't have to have perfect credit to get an FHA mortgage. In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for an FHA loan than a conventional loan.


The FHA does not give money to people for a home and it does not set the interest rates on mortgages it insures. FHA insures loans for lenders against defaults.


You may use an FHA-insured mortgage to purchase or refinance a new or existing 1-4 family home, a condominium unit or a manufactured or mobile home (provided it is on a permanent foundation).