General Disclaimer: All the articles here are presented with no warranty. The information displayed on investingbytes.com may be different from what you see when you visit a financial institution, service provider, or a specific product’s site. We are not responsible for any errors or other inaccuracies in the content on our website. The information provided on our website is solely for informational and educational purposes, We recommend that you obtain considered and independent advice from a financial professional before you make any financial decisions or implement any financial strategy.
Advertiser Disclosure: Card Listings and other financial products that appear on this site are from financial companies for which investingbytes.com may receive compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. Investingbytes.com does not include the entire universe of available offers. Editorial opinions expressed on the site are strictly our own and are not provided, endorsed, or approved by advertisers.
All you need to know about the Federal Housing Administration loan
FHA loan is a government-backed mortgage that’s insured by the Federal Housing Administration (FHA). This type of loan is popular among those who are buying a house for the first time. They allow you down payments of 3.5% for credit scores of 580+. With this loan, you have to remember that lower your credit score, higher the interest borrowers will receive. If a borrower defaults on an FHA mortgage, then the FHA will pay off the balance debt and take possession of the house.
For borrowers, interested in buying a home with an FHA loan, it is important for them to have a down payment amount of 3.5% and have a look at FHA loan guidelines. The credit score and down payment amounts are 2 requirements for FHA loan.
Who can opt for FHA Loans?
Candidates that can go for FHA loans:
The loan limits provided by FHA increased in 2017 from $271,050 to $275,665 for low-cost areas. This is the maximum loan limit provided by FHA in 60% of the country.
Why one requires an FHA loan?
FHA loans are an easy way of getting sanctions for various kinds of requirements. These loans come with FHA loan guidelines and provide easy and quick loan qualification.
It is advised, no matter what kind of reason you apply for a loan, one should always go through the FHA loan guidelines.
Subscribe to our newsletter to receive latest updates in the world of finance!