FHA Mortgage
Financial situations are like fingerprints; they differ for each person. Since a mortgage is the largest, and most credit effecting financial decision a person can make, it is important that it is tailored to suit the borrowers needs. Lucky for you, that shouldn’t be a problem. There are thousands of mortgage programs out there, and one of the is bound to suit your needs. Keep reading if you are interested in finding out more about the Federal Housing Administration (FHA) Mortgage.
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Overview of the FHA Mortgage
The FHA Mortgage makes it easy for people to own a home. The FHA Mortgage is sponsored by the Federal Housing Administration, and is often used by first time homebuyers.
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Common Questions: Advantages and Disadvantages of the FHA Mortgage
- One of the main advantages that the FHA Mortgage offers first time homebuyers is the minimum down payment requirement. Many people can afford to pay monthly mortgage payments, but cannot seem to put aside much of a down payment. Since this loan only requires a 3% down payment (and that money can come from a friend, charitable foundation, or other source) many borrowers find themselves in a position to enter the homeowning world for the first time.
• Another great advantage that the FHA Mortgage offers is the credit qualification standards. The FHA Mortgage is quite easy when it comes to credit score expectations. This is just another way in which the FHA Mortgage invites otherwise excluded people into the homeownership circle.
• Finally, the FHA Mortgage requires little to no closing fees.
• The only disadvantage that a FHA Mortgage has is that it requires Mortgage Insurance. Mortgage Insurance can be rather expensive. The Mortgage Insurance is calculated in with the monthly payment, and is no loner required after five years of payments, or when 78% of the mortgage is paid, which ever comes first.
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