FHA Mortgages For First Time Buyers

FHA Mortgages For First Time Buyers

Being a first time home buyer, using an FHA mortgage can make purchasing a home very easy. The FHA has helped satisfy the first time home owners dream, by implementing a program that makes a home affordable. With an FHA loan, you can get a home with low down payment, low closing costs, and relatively flexible credit requirements. Here are some reasons why FHA loans are popular, and why you should consider them.

1. Flexible Credit Score Requirement: With minimal credit score requirements, more and more first time home owners, especially young couples, are able to qualify for a mortgage.

2. Affordable Down Payments: With a down payment price only 3.5% of the purchase price, this requirement can be easily satisfied. You can even use funds from a 401k retirement account to pay it.

3. Low Interest Rates: Because of the FHA’s desire to make a home accessible to virtually anyone – they’ve made it so that these types of loans are subject to low interest rates. This makes the home affordable, and keeps monthly payments low.

4. High Debt To Income Ratio:  The FHA program has a much higher debt to income ratio (55%), compared to conventional programs that only allow up to 45%. What this means is you have an easier time time getting a home loan, even if you owe more in debt.

When you consider the benefits that come from such flexible guidelines, you can see now why the FHA program is so popular, and why/how it makes homeownership possible for almost anyone! Make sure before you try to purchase a home, that you get your documents in order.

 

 

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