Federal Housing Association (FHA) loans have been on the rise since the housing bust in 2008. With other types of loans no longer available to low income families, the FHA loan has become newly attractive to many seeking home ownership.
FHA loans are insured by the government through the Federal Housing Association. The FHA does not handle loans, but rather serves as the insurance on them. Having this insurance makes for a safe loan. Since the government is backing the borrower, lenders are more likely to cut a good deal for homebuyers.
Top Advantages of FHA Loans
FHA loans are the best choice for many homebuyers because of the small down payment required. The typical down payment is 20% of the price of the house. This significant difference in size of down payment allows homebuyers to get into a house sooner.
Another advantage of FHA loans is no minimum credit score requirement. A borrower with a credit score of less than 500 may have a harder time getting a loan, but will not be immediately denied an FHA loan.
Contact us today at Choice Lending Services to discuss qualification for FHA loans.