| FHA loans: | | | | - People with bad credit score can get these loans |
| These loans have helped so many people since its | | | | much more easily. But they can find it really hard to get |
| inception. The federal housing administration insures the | | | | approved for the conventional home loans, |
| loans given by lenders to the borrowers. They do not | | | | - Less down payments and also low interest rate. |
| issue the loans directly to the borrowers. These loans | | | | People who do not have a good credit rating will be |
| are popular because of the insurance provided. | | | | asked to pay a higher down payment in the case of |
| Moreover, the interest rate is very less compared to | | | | usual home loans. But FHA loans do not demand such |
| the conventional loans. They have been for a very | | | | payments |
| long period. The down payments are also less for | | | | - They can be obtained more quickly because of the |
| these loans. This is another advantage of the FHA | | | | insurance given by the federal housing administration. |
| loans. People might not be ready to make a bigger | | | | - Lenders are more secure because of the insurance, |
| down payment so as to get a lowered interest rate. In | | | | - The down payments for these loans will be as little |
| such cases, these loans will be of immense use. | | | | as 3 to 5%. But the conventional home loans would |
| Other advantages of the FHA loans: | | | | require a payment of up to 20%. |
| Other advantages of the FHA loans are as follows: | | | | |