What are the Benefits of an FHA Mortgage?
Lower Interest Rates
FHA borrowers can often get lower interest rates compared with conventional borrowers.
Flexible Credit Requirements
Because the loan is backed by the federal government, lenders are able to have more flexible credit requirements – you can be approved with a score as low as 500.
Smaller Down Payment
The average conventional loan requires a down payment of at least 20% – FHA loan down payments can be as low as 3.5%.
While there are many benefits, there are also a few downsides you’ll want to consider as well. For instance, FHA loans come with higher insurance premiums than conventional loans. Call us today and we will review all of your options in order to help you to make the right decision.