Many prospective homebuyers are being hit with a few harsh realities. The first, finding a home that is affordable is hard, especially finding an older one that you might want to fix up and build equity into. The difficulty is compounded when you try to buy it with an FHA mortgage, which is a great program, but it does have certain "unflexible" components that dictate the physical condition of the home and it NEVER goes away!
(FHA Mortgage Insurance is paid at closing AND every month inside your payment, until you pay it off!)
The program is especially useful if one or more of these situations apply to you.
- Have low to moderate income
- Are first-time or repeat homebuyers
- Have limited cash for down payment
- Have a credit score ≥ 620; borrowers with credit scores ≥ 680 may get even better pricing