FHA Home Loans are ideal for borrowers that do not have 20% to put down (the minimum required is 3.5% down). FHA Loans also have more lenient Debt-To-Income Ratio requirements and are a great mortgage option for borrowers with less than perfect credit.
Loan Term Options
With FHA Home Loans you can choose terms of 30 years, 25 years, 20 years, or 15 years.
Benefits of an FHA Mortgage
- Require less down than Conventional Mortgages.
- Once you have an FHA Loan you can streamline refinance for a lower rate (as long as you qualify) with no appraisal needed.
- Traditionally, FHA loans allow for more buying power than Conventional Loans because of their leniency with Debt-To-Income Ratios.
- If you have had a bankruptcy, foreclosure, or a Deed in Lieu of your past – FHA Mortgages have options (after a period of time) to allow you to do a loan.
- Multi-Unit properties are allowed
- Competitive interest rates.
On purchases or refinances (not streamline loans), FHA requires an appraisal that proves that there is no peeling paint, railings where needed and that the house is in turn-key condition. If the property needs aspects of it repaired then there is an option with the FHA 203K program (click Rehab Loans). FHA Loans also require that the property be your primary residence.