It is actually a good time to get a home loan today. Rates have never been lower, and many lenders like primaryresidentialmortgage.com are willing to negotiate terms to encourage business. However, the Federal Housing Authority offers a program for people who may not qualify for a conventional mortgage loan. Here are some benefits of an FHA loan program.
A regular mortgage typically requires a down payment of about 20%. You can negotiate this down to around 10%, but you will have to pay a higher interest rate. An FHA loan program, on the other, only requires a 3.5% down payment if they have a credit score of at least 580. For anyone with a credit score between 500 and 579, however, the 10% down payment is still in effect.
Most people are not aware that even if they qualify for a regular mortgage and can manage the down payment, there are still closing costs to consider. The upfront costs can be a lot, so it may beyond the ability of many borrowers. You may get your lender to cover closing costs under an FHA loan program. However, you should know that if they do that, you might pay more in interest rates.
The FHA also offers special programs for teachers, firefighters, police officers, and emergency medical technician. They are only required $100 down payment and enjoy special discounts on the appraised value of the property. There are certain limitations and conditions, but it does help them in getting a place of their own.
The FHA loan program is not for everyone. There are quite a few limitations and conditions attached to it. However, for those that have a problem with credit score or coming up with initial cash out, the FHA is offering a good option for home ownership. Ask your lender if they offer FHA loan programs.