There are many types of home loans out there including, conventional, private, VA, and FHA. Here to help you choose, we have broken down the pros and cons of what an FHA loan means for you.
-FHA loans offer lower interest rates than conventional or private loans.
-These types of loans usually only require 3%-4% initial down payment, which is relatively low compared to other loans, and this money doesn’t have to come directly from your savings, but can be from a gift, government funding, or other funds.
-Home savings programs can be started sooner for homeowners with FHA loans, which will inevitably save homeowners thousands long-term.
-While FHA loans allow married individuals to purchase homes individually, there is a sneaky little clause that requires that their spouse’s debt and credit be taken into consideration affecting the spouse who is purchasing.
-Some underwriting on these loans allows for more restrictions on the condition of the property you are purchasing. For example if there is no sink, or broken windows, or anything else that’s considered a health risk by the lender, then the lender may not approve the purchase of the home.
-Another nuisance is a lot of extensive paperwork.