Most people dream of the day they can afford to own a home they can legitimately call their own. The only setback is that the cost of living is never as good as the national economy. It would require some serious belt-tightening and smart expenditures to even scrape up enough money to make the down payment. If that’s accomplished, other problems will start rearing their ugly heads like furnishings, monthly bills, transportation expenses and, worst of all, heavy mortgages.
We all need a bright light somewhere to keep us going and this is where an FHA Home Loan steps in. Simply put, an FHA loan guarantees the loan of a first time home buyer. This allows first timers to loan a substantial amount that’s enough for buying their first home. They are designed to essentially lighten the burden on the down payment which can go as far down as 3.5%. The primary requirements by prospective borrower today are that they have a good credit and can property document income.
An FHA loan has a lot of advantages but if you need to know the best reasons for getting one, we’ve come up with the top five best for you.
1. Very low down payment
This is probably the best reason of all. This is significantly lower than the regular conventional loan. The FHA mortgage only requires 3.5% of the total purchase price of the property.
2. Low interest rate/ Fix Rates
FHA 30 year fix interest rates are currently at all-time historic lows. The FHA loan programs offer secure 30 year fix rates terms.
3. Easier credit requirements
This is ideal for individuals who had a few credit bumps in the past. Generally a bankruptcy and foreclosure waiting period is around four to five years. The current min required credit score is 600.
4. Co-borrowers do not need to occupy the home
The combined income and debt of the occupant and the co-borrower who is a non-occupant is taken into consideration for allowing the release of the loan.
FHA Mortgage Source is Florida FHA home loan leader. Serving all of Florida First Time Home Buyers 7 days a week including West Palm Beach, FL, Fort Lauderdale FL, Orlando FL and Tampa FL. Please call us at 800-743-7556 or just fill out the short information request form on the right side of this page to have a specialist contact you.