Security of a fixed rate or the versatility of an FHA 5-year ARM
Less stringent qualification and credit requirements
Buy a home with as little as 3.5% down (primary home)
FHA loans have helped many buy their new home with the benefit of loan flexibility and rate security. Featuring down payments as low as 3.5%, the FHA program is more lenient than a conventional mortgage. So, if you have a below-average credit score or other qualification problems, it might be your best option.
- Available with a fixed or adjustable rate
- Purchase a new home with a down payment of as little as 3.5%
- May allow you to use a gift or grant for all or a portion of your closing costs.
- Gives current FHA homeowners the possibility of getting an FHA Streamline Refinance.
- You typically have to pay upfront and monthly FHA mortgage insurance premiums.
- No prepayment penalty. You may pay some or all of your loan balance in advance without a penalty.