Low down payments and eligibility with less-than-sterling credit scores are two key factors that make a Federal Housing Administration (FHA) loan attractive to many home buyers. In addition, FHA mortgage rates can be very attractive, making this program an even better choice for some. Of course, it’s necessary to pay for mortgage insurance, which is intended to protect the lender if the person borrowing fails to make payments.
Long-Standing Program
The FHA program has been around for nearly a century. It was established after many borrowers defaulted on loans in the difficult economic times of the 1930s. Because of the favorable terms available, the process provides an important stimulus to the housing market simply because it makes loans accessible to those who might otherwise not qualify. If you feel that this program might benefit you, you should talk to a representative of Midwest Mortgage Associates Corporation to get more information.
As you look more closely at FHA mortgage rates, you’ll also learn you may only be required to have a low down payment of 3.5% if your FICO score is at least 580. If the number is lower than this, you could still qualify, though the down payment requirement would be 10%. Again, if you’re not sure where you stand in relation to the requirements, a mortgage professional will be able to answer most of your questions or get answers for you.
Steady Employment
As you begin the loan process, you must have a steady employment history with the same employer for the past two years. Your FHA loan will only be available for your primary residence. There are several other important details in the program’s guidelines, most of which apply to those who have bankruptcies or foreclosures on their records. Talk to a mortgage specialist to find out if you’re eligible under the FHA program. You can also connect them on Facebook.
