FHA loans are government-backed loans that often have a much lower interest rate than a conventional (traditional) loan. Before you right off these loans as impossible options, keep in mind that millions of people are benefiting from them right now. In fact, FHA has increased its loan amount to upwards of $250,000 in most areas, making FHA Loans an important option in the mortgage landscape. Here are five ways that FHA loans can help you to obtain the home you are looking for, or help you in other ways.
5 Ways that FHA loans can help you get the home you are looking for:
#1: Lower Interest Rates: The main benefit of FHA loans is to provide individuals with a lower interest rate. If the FHA is backing your loan, you are less of a risk to the lender. Therefore, they agree to offer you a slightly lower interest rate. This translates into an interest rate that could save you thousands of dollars over the lifetime of that loan. That is money in your pocket.
#2: Better Qualifications: Many lenders have increased their standards in lending money. If you do not have a credit score over 700, then our best bet to getting a low interest rate home loan is with the FHA loans. You do not have to have as much down to qualify for these loans either (usually 3.5%)
#3: Help Getting Out of a High Interest Loan: Perhaps you have a high interest rate loan. You are paying much more than the current low rates that are available. FHA loans can help you to get a low rate even on refinances. Definitely, worth looking forward to since it will drastically cut the amount it costs to buy your home.
#4: You Need Help: There are a number of programs available through the FHA to help you to get out of a troublesome home loan. You can stop foreclosures and often stop your overall risk of losing your home by taking advantage of these programs. If you need this help, contact an FHA loan specialist today.
#5: You Are A First Time Home Buyer: For those who have yet to buy a home and are worried about doing so, FHA loans can help. These loans are highly affordable and they are ideal for the first time homebuyer unsure of what to do next.
FHA loans can help millions of people to get into the homes they want and need, or to protect them from losing their investment. Contact a professional today to learn if you qualify.