FHA Home loan information
FHA home loans are a great way to purchase or refinance your next home. When it comes to mortgages there many different possibilities for financing. The best way to decide which type of loan is best for you it to be informed and educated about all the different types of loans available (FHA and Conventional). Here is some valuable information about FHA home loans.
A FHA home loan is a mortgage that is insured by the Federal Housing Administration, a United States government agency. FHA loans were designed by the government to allow lower income families an opportunity to purchase a home. Today FHA home loans allow borrowers to purchase homes with smaller down payments, less than perfect credit and higher debt to income ratios. There are disadvantages of FHA loans including PMI or mortgage insurance, more strict property requirements, maximum amount a loan can be, and possible additional income tax penalties if you sell the property too soon.
Before you decide which type of loan to pursue consider all the pros and cons of each type of loan.
August 20th, 2008
[...] FHA loans are non-conventional loans. FHA loans are insured by the federal government and have many advantages over conventional loans. FHA loans usually require lower down payments, have more flexibility when it comes to the borrowers credit scores, and have lower PMI or private mortgage insurance. [...]
August 27th, 2008
FHA loans are a great way to purchase a home for first time home buyers. It may cost a little extra up front but the benefits of owning a home are well worth it!
October 20th, 2008
FHA loans have advantages, but one of the worst disadvantages are the more expensive closing costs. Be sure to consider the higher closing costs before you decide to use an FAH loan.