FHA home loans in my opinion are one of the best home loan options available. FHA Home loans require just 3% for a down payment and FHA home loans have a low amount of monthly PMI (mortgage insurance) due to an upfront 1.5% that is financed into the loan amount over the term of the loan. This makes the monthly payment more affordable than conventional home loan options and helps qualify more borrowers. FHA allows for the seller to pay up to 6% of the sale price towards your closing costs and pre-paid items. FHA allows for the down payment to be a “gift” from an immediate family member where conventional home loans require 5% of your own money into the transaction Best Car Loans.
FHA home loans did not have a required credit score until recently. The lowest credit score allowed by lending institutions at this time is a 580. A borrower can be approved for an FHA loan even if they have a completely blank credit report by building a “non-traditional” credit report with cell phone, energy bills, auto insurance payments etc. Credit blemishes may not be an issue if they are older than 12 months or sooner if there are extenuating circumstances that created the blemishes. FHA home loans are one of few home loans that will allow a non-occupying co-borrower (borrower on the loan that will not reside at the residence) to assist with qualifying the primary borrower for the loan.
FHA home loans used to have a lot of automatic repairs when it came to the condition of the property, in December of 2006 it was changed to only a few remaining. If you are refinancing and need to pull cash out up to 95% of your appraised value, FHA can handle that as well. If you plan on buying or refinancing a home, consider an FHA home loan. FHASecure. The Federal Housing Administration (FHA) has announced an initiative to assist homeowners in refinancing various types of adjustable rate mortgages that have recently reset.