WHY? FHA LOANS

FHA loan program requires as little as 3.5% down payment for borrowers with a 580-credit score or higher. For homebuyers with less-than-perfect credit, FHA loans offer additional significant benefits. The government backing means average FHA interest rates are typically lower than average rates for conventional mortgages.

Additional requirements

· Credit score of at least 500.

· Debt-to-income ratio of 50% or less.

· 10% down payment if your credit score is 500-579.

· The house must be your primary residence and must meet the FHA’s minimum property requirements.

FHA loan is a good idea for homebuyers who have a low to moderate income and may not have funds available for a large down payment. Homebuyers with good credit only need put down 3.5% with an FHA loan. Conventional loans often require a much larger down payment. This type of loan is also a good idea for first time homebuyers with less-than-perfect credit as FHA loans maintain lenient credit score requirements. If you are looking to move into your home fast, an FHA loan is a good option.