If you're in the market to purchase a home, you may be wondering what type of mortgage is right for you. One option to consider is an FHA mortgage. Here are some of the benefits of using an FHA mortgage to purchase a home:
Lower Down Payment
One of the biggest advantages of an FHA mortgage is the lower down payment requirement. With an FHA loan, you can put down as little as 3.5% of the purchase price of the home. This can be a huge benefit if you don't have a lot of cash on hand for a down payment.
Another advantage of an FHA mortgage is that it can be easier to qualify for than other types of loans. FHA loans have more lenient credit score and income requirements, which can make it easier for people with less-than-perfect credit or lower incomes to qualify.
Lower Interest Rates
FHA mortgages also tend to have lower interest rates than other types of loans. This can save you thousands of dollars over the life of the loan.
FHA loans are also assumable, which means that if you sell your home, the buyer can take over your FHA loan. This can be a selling point for potential buyers and could make your home more attractive to them.
Finally, FHA loans can help with closing costs. The FHA allows sellers to contribute up to 6% of the purchase price of the home towards the buyer's closing costs. This can be a huge help in reducing the amount of cash you need to bring to the closing table.
In conclusion, an FHA mortgage can be a great option for those looking to purchase a home. With a lower down payment, easier qualification, lower interest rates, assumable loans, and help with closing costs, it's definitely worth considering.
Over the last 20+ years our we have experience in originating hundreds of FHA loans. With the mire lenient borrower requirements it allows for the best chance if getting preapproved.