All About FHA Mortgages

An FHA mortgage is a housing loan insured by the Federal Housing Administration. The borrower of an FHA loan should pay for mortgage insurance which will protect the lender in case of the borrower defaulting on the loan. Because of the FHA insurance, the lender is in a position to offer mortgage loans at attractive interest rates. Such loans have a more flexible and less stringent qualification requirement. In fact, the FHA is government agency within the U.S. Department of Housing and Urban Development. go here this read offers information on FHA mortgages.

Your credit history plays a crucial part in determining if you qualify for an FHA mortgage. If you need a loan with a lower down payment, low as 3.5% of the total value of the house, you need a credit score of 580 or higher. If you have a credit score of 500 to 579, you should make a down payment of at least 10%. Borrowers who have a credit score of less than 500 are ineligible for FHA loans. Since the FHA is not a lending agency but an insurer, the borrower should go to an FHA-approved lender to obtain the mortgage loan. Not all approved lenders offer the same interest rates. Closing fees and charges can vary depending on the lender you choose. FHA also has a special provision to provide a loan product for homeowners who need to repair and renovate their homes. These are some of the most significant advantages of an Franklin FHA mortgage loan.

With so many FHA-approved lenders on the market and all of them not being equal, you should do some homework when choosing the bank that offers the best conditions to obtain the mortgage. It will help you secure the best FHA-approved mortgage loan to purchase your dream home.

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