Six features first-timers should know about FHA
Because they are government-backed, Federal Housing Administration (FHA) home loans have attractive interest rates and less stringent qualifications. Loan applicants must meet credit-score and down-payment requirements, and show proof of employment and a steady income. An appraisal of the home by an FHA-approved appraiser is also required. Following are five features of FHA loans first-time homebuyers should consider while weighing their financing options. More flexible credit guidelines give more purchase power Low Down Payment - as little as 3.5% down on single family residence, 2-4 units and FHA approved condominiums 100% gift allowable for down payment Lower credit requirements. 580 minimum FICO credit score. Competitive market rates No income restrictions Limited tradelines needed Higher debt-to-income ratios approval Shorter waiting period for major credit events like bankruptcy FHA loans are Transferable to p...