Benefits of an FHA Mortgage

Today there are many different loan options available on the market.  One of the most widely known loan programs is the FHA home loan.  This program is available throughout the United States with no area or income restrictions and becomes an immediate secondary attraction to those looking outside of USDA eligible areas or for those borrowers that exceed the income limitations associated with USDA home loans.  The reason many people are intrigued by the FHA loan as a backup to USDA is the low down payment requirement of 3.5%, however, what many do not realize is that FHA loans come with a hefty private mortgage insurance tacked on to their monthly payment.  This mortgage insurance has also recently become necessary for the life of the loan term.  We have an alternative loan program that requires a much lower rate of mortgage insurance and in some cases there may be no mortgage insurance paid by the borrower at all.  The program is a conventional loan program, which is not widely available at local lending institutions, with a down payment as little as 3%.  The greatest benefit of this program to the borrower is that we are able to get them into a home with a very low down payment without the excessive mortgage insurance that comes along with an FHA loan.  This should reduce their overall monthly payment saving them money over the life of the loan and on top of that when they have enough equity in the property they should be able to have the mortgage insurance lifted reducing their monthly payment even further.

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9 thoughts on “Benefits of an FHA Mortgage

      • Hi my name is Robert my number is 2074917891 iam currently renting a house on 121galilee rd.. In farmington Maine 04938 , Franklin county, I would like to get a first time buyers loan and buy this house .

  1. I’m recently divorced, living in a home that’s been listed for sale for 8 months as part of decree; however, haven’t been paying per lender & wish to relocate to Maryland rural development area. Have an income but am diisabled needing home for self & daughter while finishing grad school. Have seen several properties but need help financing. Is FHA right for me & are there disability grants/assistance available. Please advise…

  2. i am moving to Texas in Feb. and would like to know what i have to do to quailified for ah usda loan or fha loan. my credit is not that great. if there’s any information you can give me i would appreciated very much.

  3. My husband and I are trying to buy a home we got approved for the loan but, wanted some info on how to get or go about getting the down payment assistant for the purchase.

  4. I am interested in a foreclosure property with a terrible house. The land is beautiful. We’d like to tear down the house and place a modular home there instead. It has a full basement that is in good condition. It has hookups for: gas, electric, own well, own septic. In a potential rural area. What kind of loan would we be able to get with this situation? Thank you.

  5. If my credit score is a 620 or higher but I have a low income but my husband has a low credit score but has a better income could we still apply for a first time buyer’s loan with my credit score and his income or do we come bind both are incomes and use my credit score please contact at on how this works please and thank you Erin.

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