How FHA Approval Helps Buyers Purchase a Home
FHA-insured mortgages offer many benefits and protections to buyers:
It's easier to qualify. Because the FHA insures mortgages, lenders may be more willing
to give loan terms that make it easier to qualify.
You can have less-than-perfect credit. Buyers don't have to have a perfect credit score
to obtain a FHA mortgage. In fact, even with credit problems, such as a bankruptcy, it's
easier to qualify for a FHA loan than a conventional loan.
Down payment is low. FHA loans have a low 3.5% down payment, and that money can
come from a family member, employer or charitable organization as a gift. Other loan
programs don't allow this.
They cost less. FHA loans have competitive interest rates because the federal
government insures the loans. Always compare a FHA loan with other loan types to get
the best rate available
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