If you are looking into buying a house and are unsure if you will be able to get financing, consider the benefits of an FHA mortgage loan. Let’s define what an FHA mortgage loan actually is. This is a loan issued by federally qualified lenders and insured by the Federal Housing Administration. These loans are designed to help low to medium income borrowers. The benefits of an FHA loan are designed to help those obtain financing for housing, when they would otherwise not be able to with a conventional mortgage loan. Many borrowers enjoy the flexibility of an FHA loan, because they don’t have to put 20% down. Therefore, the FHA is an option that comes with many benefits so you can get the home you’ve always desired.
Here are the top 5 benefits of an FHA mortgage loan:
- Credit Score requirements are low. You can obtain an FHA Loan with a less than perfect credit score, with the minimum score being 620. So if you have a few minor credit problems you shouldn’t have any issues obtaining an FHA mortgage loan.
- Low Down payment. Many FHA loans can be obtained with a low down payment. Many who get an FHA loan put down as little as 3.5% as a down payment, rather than the conventional 20%. This means you get 96.5% financing.
- Gift Funds are accepted. You can use gift funds from a relative or charitable group to pay for the 3.5% down payment, meaning you can get financing even if the down payment isn’t out of your pocket.
- No income limits. There are no income limits with an FHA insured mortgage. Therefore, almost anyone can qualify. However, you must have reasonable credit, as stated above, and the ability to make the monthly payments.
- Low Risk for your lender. Because an FHA mortgage is insured by the Federal Housing Administration, lenders can make mortgages for first time homebuyers without risk.
We have outlined the top 5 benefits of an FHA mortgage loan. However, there are other benefits as well, depending on your situation. At North Florida Mortgage we offer an FHA mortgage loan with the same benefits mentioned above. It is our goal to help you get the proper financing you need to obtain your dream home. Contact us today to help you determine the best financing options for you!