| First time homebuyers should do their due | | | | the exact same market factors as conventional |
| diligence with programs that promise them | | | | rates. Depending on your specific |
| great rates for their first home. But one | | | | circumstances, FHA loans may even be less |
| program that they don't have to worry about | | | | expensive than a conventional loan for a |
| scamming them is FHA loans. Getting an FHA | | | | first time homebuyer. If you've had credit |
| Loan Mortgage Rate is simple for first time | | | | problems in the past, then you are definitely |
| homebuyers. It allows them to get into a home | | | | getting a better rate with an FHA loan than |
| without worrying about credit problems. | | | | you would otherwise. |
| | | | |
| Despite recent rises in interest rates, FHA | | | | The thing that confuses a lot of first time |
| loan mortgage rates are still low. The sub | | | | borrowers is the FHA required mortgage |
| prime mortgage financing deals may be gone, | | | | insurance. If your mortgage covers above 80% |
| but FHA loans allow people to break into the | | | | of the property that you are financing, then |
| housing market. There are some common | | | | you'll need mortgage insurance. This |
| misconceptions about FHA loans that prevent a | | | | insurance will pay off a portion of your loan |
| lot of people from trying to own a home. It's | | | | if you default on it. FHA's mortgage |
| a pleasant surprise to many that they can | | | | insurance program requires that you put down |
| still buy a home in todays market. | | | | a 1.5% upfront mortgage insurance payment, |
| | | | which will automatically be added to your |
| FHA loans don't take any longer to get | | | | loan. You'll also be paying .50% per year, |
| approved than any other type of loan. There | | | | which is also divided up and added to your |
| are just a few more documents to fill out | | | | loan amount. When you compare this to |
| than a standard loan, but your loan officer | | | | conventional loans that have up to 3% per |
| can help you with those. The extra documents | | | | year in mortgage insurance expenses, the FHA |
| are just there to protect you and your assets | | | | loans are definitely the better deal. |
| during the financing process. The extra | | | | |
| paperwork really isn't a hassle when you | | | | FHA loan mortgage rates are worth looking |
| compare it to the opportunity that you're | | | | into if you are a first time homebuyer. There |
| receiving. | | | | are some restrictions on income, but they are |
| | | | a lot higher than people think. FHA loans are |
| There's also a misconception that FHA loan | | | | a great option if you meet their |
| mortgage rates are higher than conventional | | | | qualifications. |
| loans. Be assured that FHA rates are based on | | | | |