Benefits of FHA Mortgage Loans

FHA mortgage loans are the most popular kind of loan programs for the people looking to purchase and refinance a home.  Though FHA loans are there for several years, they become highly popular when private lending programs tighten their standards during recent low down of housing market.  Some important benefits of FHA loans are as follows.

The most interesting thing is you can borrow as much as 97% of the property price.  Though you will have to pay an upfront payment of 3.5% down payment, you may get this amount as gift or grant.  In this case, if you are a first time home buyer with low income, you have good chances to fulfill your dreams with FHA loans. You can use FHA loan calculators to find out your capacity to pay off the loan.   You can find these FHA Mortgage calculators at various reputed websites dealing in FHA loan information.

You can easily qualify a FHA loan because of very lenient requirement guidelines.  You need a minimum credit score of 620 which is very low.  You are not disqualified automatically even if you have had a foreclosure or bankruptcy.

FHA loans can be used for purchasing a home as well as for refinancing. According to FHA guidelines, you need not get your home appraised for a streamlines refinance.  It means you can be qualified for the FHA loan even if you owe more than the assessed value of your house.

These are a few important benefits out of the long list of benefits.

This entry was posted on Friday, April 30th, 2010 at 9:01 pm and is filed under House Loan. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.