4 Reasons an FHA Loan May be Right for You
If you stop and think about it, most people probably make some type of purchase or another just about every day. Some of these may be relatively inexpensive such as meals for the day or week, gas in the car, a new outfit or any number of other things. But unless you’re planning on buying a business or some type of commercial real estate, you’ll likely never make a larger purchase in your life than your home. The transaction brings great responsibility and commitment, so you want to make sure you get the best financing possible to secure what you hope will be a long-term investment. FHA loan lenders stand ready to set you up with an FHA loan so you get successfully transition to your new place. There are several reasons why this form of lending could be attractive to you.
Lower Down Payment Required
If you currently own a home and are moving into a new place, coming up with money for a down payment might not be so tough, especially if you’ve built up some nice equity. However, if you’ve never owned a home before, or if you have but the market was poor and you’re not getting much out the sale, a down payment could be a difficult thing to come by. While some loan programs require a minimum of 5 percent (and sometimes more), FHA loan lenders will only ask for 3.5 percent down. This change could ease your burden and make the down payment more manageable.
Lower Credit Score
For some prospective homebuyers, the dreaded credit score can be a huge barrier to getting into a dream home. Excessive debt, late or missed payments, or other poor spending habits can lower one’s credit score. Scores on the low end frighten lenders; however, FHA loan lenders are much more willing to lend to buyers with lower scores than lenders of other financing programs are. You can qualify for an FHA loan even if your score has dipped below 600. So if you’ve been denied loans in the past for a poor credit score, FHA loans may be your ticket to home ownership.
Flexible Terms Available
While some loan programs are rigid, FHA direct lenders have more flexibility at their disposal. Generally, terms of 15, 20, 25 and 30 years are available. Plus, you can choose from fixed rates to adjustable rates. A reputable lender will work hard to get you the best rate possible. Because every homebuyer is in a different situation, it’s nice to have so many options to choose from to help you make the right selection for you and your family.
FHA loans are guaranteed by the U.S. government, so you can have confidence everything will come together nicely for you. Because the Federal Housing Administration insures these loans, you can be sure your loan will remain in force and your investment will be protected throughout the duration.
FHA loan lenders are waiting to help you get into your new home. It’s easy to see why this might be the best route for you to go.