The mortgage industry offers specific benefits to people who are able to meet certain qualification thresholds, and a great example of this is the FHA loan program. The FHA is the Federal Housing Administration, and an FHA loan refers to a loan that’s insured by this administration. Lenders pay for mortgage insurance to protect from defaults.
At Primary Residential Mortgage, we offer flexible FHA loan options which are great for mid-tier income families and first-time homebuyers. Let’s look at some of the qualities that make FHA loans so attractive to some people.
To qualify for an FHA loan, it’s typically a requirement to have a credit score of at least 580. One of our FHA loan specialists can answer any questions you have about this program, walk you through the requirements, and help to get you pre-qualified.
In particular, down payments are far lower than typical loans, which is a major boost for people who may struggle to come up with a large lump sum up front. Where typical loans require a 20 percent down payment on the total, FHA loans only require a 3.5 percent down payment. We also offer down payment assistance for people who are in further need.
The other primary benefit in FHA loans is low mortgage rates. If you have a credit score of, say, 660, you’ll qualify for the same interest rate as a conventional borrower would if they had a credit score of 740.
Most conventional loans only allow sellers to pay up to 3 percent of the buyer’s closing cost during a mortgage transaction. However, with FHA loans, this doubles to up to 6 percent, and this can be a huge benefit for many people. Closing costs can often be huge lump expenses similar to down payments, so this is perfect for people who struggle with those larger sums.
Want to learn more about FHA loans or any of our other mortgage broker services? Speak to one of our loan officers at Primary Residential Mortgage in Fort Myers today.
The views and opinions expressed are my own and do not necessarily represent the official policy or position of Primary Residential Mortgage, Inc