Much has been written about the potential benefits of using an FHA loan to buy a house.. In truth, there are some real disadvantages of FHA loans.. An Update for Borrowers · Is an FHA Mortgage Loan a Good Idea for First-Time Buyers?
Fha Refinance Rates Todays Fha Mortgage Rates *Adjustable rate mortgage (arm) interest rates and payments are subject to increase after the initial fixed-rate period (5 years for a 5/1 ARM, 7 years for a 7/1 ARM) and assume a 30-year repayment term. FHA, VA and other mortgage loan terms and programs are available.
If an FHA loan is your only option for financing a home, then it is a great idea. However, if you can qualify for a Conventional loan (Not government insured like FHA), you may be able to get better loan terms.
Choosing between an FHA or conventional loan can be confusing.. have a good credit history, you'll pay less for PMI on a conventional loan.
An FHA mortgage loan can help if you have at least three and a half percent to put down. (Gone are the days, thankfully, of 100 percent mortgages). And even though FHA loan credit requirements are less stringent than traditional loans, rumor has it the FHA has updated its "desirable" minimum credit score to 693 from 633.
Are FHA-Insured Loans A Good Idea? – Forbes – An FHA loan is a loan that is insured by the federal housing administration (fha ). The FHA-insured mortgage loan’s easier lending standards and a lower down payment have made it a popular and in some cases, the only option for potential homeowners.
When is an FHA loan a good idea? There are plenty of new purchase options, but those who have existing home loans and want to refinance into lower payments or interest rates should also explore their fha mortgage options. fha Loans Are For Those Who Want To Refinance FHA Loans. Borrowers with existing FHA mortgage loans should consider the fha streamline refinance loan option.
An FHA loan is a good idea for homebuyers who have a low to moderate income and may not have funds available for a large down payment. Homebuyers with good credit only have to put down 3.5 percent.
If your home does not meet the guidelines, you may not be able to get a loan. A good rule of thumb is to look at the guidelines as you search for a home so you will have an idea if the home qualifies.