Miami FHA Loans – Is it the Right Choice?

Miami FHA Loans – Is it the Right Choice?

An FHA loan in Miami is a form of mortgage loan that the Federal Housing Administration (FHA) insures for various approved money lenders. This enables lenders to offer loans to borrowers without the fear of defaulted payments the loans are insured in advance.

The FHA loan has also made house loans easily affordable and accessible for most home buyers and is currently very popular among those people who are aiming to purchase their very first house.

If you are wondering whether applying for a Miami FHA loan is the right choice for you, check out its pros and cons below.

Advantages of an FHA Loan

Easy Availability

One of the biggest advantages of a Miami FHA loan is that it the easiest mortgage that you can qualify for. The major reason for this ease is the low down-payment rate applicable for an FHA loan as only a 3.5% of down payment is required.

Assumable

A Miami FHA loan is assumable. This is a big benefit for borrowers who wish to sell their homes before their mortgage payments have been settled. When the house is sold to a new buyer, the mortgage payments are transferable and will then be taken on by the new owner of the property.

Credit Requirements

People having a bad credit history are often refused applications for future loans. However, as an FHA loan is insured for the lender, you can apply for it regardless of your credit history. Hence, this loan allows borrowers who have undergone bankruptcy and foreclosures, to successfully apply for a mortgage for their homes.

Disadvantages of an FHA Loan

Payment of Mortgage Insurance Premium (MIP)

With so many positives, the FHA insured loan has only one major flaw. This is the MIP that needs to be paid by the borrower upfront at the receiving of the loan and as a monthly payment as well. So it is simply a matter of paying a little extra to gain a loan with many benefits.

If you wish to apply for a Miami FHA loan or just want to get some more information on it; contact us at First Nationwide Lending by dialing (877) 442-4023 to talk to our helpful personnel.

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