All You Need to Know About FHA Home Loan and its Benefits With the help of FHA (Federal Housing Administration) over 34 million people have become homeowners in the U.S. FHA mortgage insurance program helps lender to attain homeownership easily. With the help of FHA's insurance, lenders are very much sure about the fact that they will be paid back in case a borrower defaults. Hence that reduces their risk and makes it possible for them to lend more liberally.
Here we will guide you through the eligibility criteria for FHA purchase loan in Utah. 1. You should occupy the home to be eligible for FHA loan in Utah. 2. Here, rentals or second homes simply do not qualify. 3. You can get loan for a multi-unit property if you aim to live in one of them. What are the basic minimum qualifications beyond the eligibility criteria? ➢ ➢ ➢ ➢
You must have worked for at least two years with same employer. Over previous two years, you must have a clean credit history. An approved FHA appraiser must have appraised your property You must qualify for financing based on the purchase price balance.
Benefits of FHA Loans: 1. It is easy to qualify for FHA loan as it requires low down payment and less credit score. 2. A down payment of 3.5 percent is required to get the maximum financing. Also, the borrowers with credit scores as low as 500 can easily qualify for an FHA loan. 3. Borrowers who cannot afford a 20 percent down payment or those who can’t get their private mortgage insurance approved should cross-check if FHA loan meets their financial requirements. 4. FHA loan is an assumable mortgage that means if you want to sell your home, the buyer “assumes” that you have taken this loan by default. Those who have been bankrupt may still be able to qualify for an FHA loan. 5. There are no closing costs, no appraisal refinances available and are very popular. Hence, our conclusion is that an FHA Home Loan is any day better than any other home loan that you may qualify. There are umpteen banks and non- banking financial institutions who compete to offer you the most attractive and low rate of interest home loans. There is no doubt about it that an FHA loan will surpass all other loans in all ways. So, if by any chance you are planning to avail home loan, do not think twice, make sure that you go for a FHA home loan today itself.
Original Source: https://medium.com/@communitylendinggroup2727/all-you-need-to-knowabout-fha-home-loan-and-its-benefits-45c092f3d4b2