This fall season, FHA (Federal Housing Administration) loans will be more popular than ever for home purchase and refinancing. These types of loans are more popular because the requirements can be much more flexible, which makes them available to a broader spectrum of potential homebuyer's.
Some reasons you may want to consider one of these fixed rate loans:
~ Attractive interest rates. FHA loans are insured. This reduces the risk and more borrowers are eligible for better or more favorable rates.
~ Easier to qualify. Even those with lower credit scores are acceptable and you can use co-borrowers who don't live with you to help you qualify.
~ Low Down Payment. As much as 96.5% of the home's value may be financed. The down payment can be used as a gift, but it is subject to conditions.
~ Not limited to primary residences. FHA loans can be used for a second or third home also.
~ No income restrictions. FHA loans don't exclude higher-income borrowers, unlike other government loans.
These are the most up-to-date requirements and conditions, but they change frequently. So, be sure to get any updates that may be available, before you go with a FHA loan. And, good luck on your home search.
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