FHA Loans
FHA loans have become increasingly popular over the past few years with home buyers. Yet contrary to what the name implies, it is not a loan. Rather it is a government agency that provide lenders insurance on a mortgage in case the loan defaults.
Yet there are many benefits to getting a FHA loan. If you are a first time home buyer with little cash, FHA loans offers a low down payment, you will only need 3.5% of the loan to close. Because FHA loans are backed by the government, lenders will often offer loans that have a lower interest rate.
Unlike other loans that may require an excellent credit score, an FHA loan may the answer for those with new credit history or less than perfect credit. FHA loans are easy credit qualifying as they consider other factors such as history of payment on utility bills and allow for co-signing of loans.
There are also FHA refinance home loans. This can help homeowners in two different ways, they can take out a second mortgage on their home if their property value has increased in the market. Homeowners can also do a streamline refinance which can be done quickly and in some cases without an appraisal.
Yet there are many benefits to getting a FHA loan. If you are a first time home buyer with little cash, FHA loans offers a low down payment, you will only need 3.5% of the loan to close. Because FHA loans are backed by the government, lenders will often offer loans that have a lower interest rate.
Unlike other loans that may require an excellent credit score, an FHA loan may the answer for those with new credit history or less than perfect credit. FHA loans are easy credit qualifying as they consider other factors such as history of payment on utility bills and allow for co-signing of loans.
There are also FHA refinance home loans. This can help homeowners in two different ways, they can take out a second mortgage on their home if their property value has increased in the market. Homeowners can also do a streamline refinance which can be done quickly and in some cases without an appraisal.