3 Simple Reasons Why FHA is Great For First Time Home Buyers
1. Seller Contribution amount- FHA will allow for the highest seller contribution versus a conventional loan…FHA 6% seller contribution. FHA allows the seller to pay for up to 6% seller contribution. Most of the time, this makes it possible for a buyer to have the option to bring cash to closing for only the minimum required down payment of 3.5% if you are looking to come to closing with the least cash as possible.
2. FHA 3.5% down payment(link)- In comparison to most loans in America, FHA allows for one of the lowest down payment options in all mortgage products. In many cases, this fits the needs of a first time buyer. If you can put down more money, FHA may not be right for you.
3. Underwriting guidelines- FHA was brought about to be the original “sub-prime” mortgage, before there was a real sub-prime market…there isn’t really a sub-prime market anymore, after about 5 years ago. My point is, FHA allows for a less strict underwriting process. One may not qualify for a conventional loan, but could on an FHA in some cases.
For more FHA mortgage facts, take a look at some of the top ranked Best FHA Posts of the past. If you click on that link, be sure to scroll down through and skim the different topics that suite your questions or concerns. There are numerous posts on that page.
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