Ten Reasons to Consider an FHA Loan

Grand Rapids Mortgage Options

Grand Rapids MortgageFHA Loans can make sense and it can be easier to obtain financing due to the loan requirements in today’s marketplace. Here are 10 reasons why a traditional FHA loan could be an ideal option.

  1. Increased Loan Limits: FHA loan limits have increased, making FHA a financing option for more borrowers.
  2. Low Down Payment: FHA loans require as little as 3.5%.
  3. Gift Funds: The entire down payment can come from a family member, employer or charitable organization.
  4. Easier to Qualify: Since FHA provides the mortgage insurance for FHA loans, there may be less restrictive parameters and guidelines than conventional loans.
  5. Less Than Perfect Credit Qualification: Borrowers with credit problems have an easier time qualifying for an FHA loan.
  6. Income Requirement: There is no median income requirement or geographic restriction for FHA loans.
  7. Financed Mortgage Insurance: FHA charges mortgage insurance up front and you able to finance this into the cost of your loan.
  8. No Reduction in Financing: Unlike conventional loans, FHA does not require a reduction to maximum financing for properties in declining markets.
  9. HUD Home Purchase Incentives: In many states, HUD, in conjunction with FHA, is offering an incentive to buyers purchasing a HUD home – a $100 down payment in lieu of the standard 3.5% requirement.
  10. No Prepayment Penalty: With an FHA loan, borrowers may prepay their loan without the worry of a costly prepayment penalty, unlike many conventional loans.

 

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