Purchasing your Home with an FHA Mortgage

[ by Victoria Belle-Miller ]

Reasons to Purchase Your New Home with an FHA Mortgage! FHA mortgages are great for current and first-time home buyers because of the multiple benefits that they offer. FHA mortgages do not have strict eligibility requirements, so you are more likely to qualify for this type of financing than with other home loans. Continue reading to find out how you can save money with an FHA mortgage! Benefits of Purchasing a Home with an FHA Mortgage FHA mortgages have low down payment requirements for purchases. So, if you do not have a large sum of money to put down up front, an FHA mortgage would be a great option for you. This will leave you with more money to put toward your monthly mortgage payment. FHA mortgages are insured by the Federal Housing Administration, which allows them to feature low FHA mortgage rates. FHA mortgage rates are typically lower than interest rates on conventional home loans. A low interest rate can save you money on your monthly mortgage payment and leave you with more money for your other expenses. Eligibility for an FHA Mortgage The FHA does not have strict credit or income eligibility guidelines. To qualify, you must have a clean credit history of at least one year, meaning you have no delinquent payments. Most lenders will require that you have a credit score of at least 620. If you have a credit score that is lower than this, our FHA mortgage specialists can help you determine whether you can still qualify for an FHA mortgage. FHA Mortgage Requirements In addition to a small down payment, you must pay a mortgage insurance premium on your FHA mortgage, which is equal to 1.75% of the loan amount. You are also required to deposit up to one year's worth of taxes and insurance into an escrow account. This ensures that your property taxes and homeowner's insurance are paid and kept current. You should consider applying for an FHA mortgage now before FHA requirements change. Soon, a higher down payment will be required for borrowers who have a credit score below 580, and the mortgage insurance premium is slated to increase to 2.25%. To learn more information about purchasing a home with an FHA mortgage or to find out how to apply, contact an FHA mortgage specialist today at 1-877-264-4736. 04:19 PM