Question:
What are the advantages of FHA real estate loans?
Answer:FHA real estate loans are very advantageous to borrowers with low to average income, average or bad credit, and have very lenient requirements regarding foreclosures, bankruptcies and collections.
FHA Real Estate Loans Advantages
- Low down payment required.
- No-occupant co-borrowers allowed to sign in the FHA real estate loan.
- Underwriting standards are also more flexible.
- FHA ARM real estate loans have the best possible structure - 1% annual cap and 5% lifetime cap.
- The FHA 203k loan allows for purchase & rehab with a single loan.
- Gift funds from various sources are allowed.
- FHA real estate loans can be streamline refinanced at no cost.
No matter how nice FHA real estate loans are, if you are a borrower with good or perfect credit, conventional loans may be better to you - lower rates and higher debt to income ratio will be allowed with non-FHA mortgages.
Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
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Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
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Why: Know and protect your credit report and score.
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
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Common misspellings: mortage and morgage