Benefits of a FHA Home Loan – The FHA Home Loan Program

Why any of us use anything is because of the benefits we get from using it – this rings true with loan programs like the HUD FHA Loan. If you are in the market to buy a home, you can use the FHA Home Loan Program to get your mortgage. The following are some of the benefits of a FHA Home Loan that you get if you use this program to buy a home or refinance your mortgage.

Benefits of a FHA Home Loan

Buy a home with little money for down payment – Believe it or not, you can use the FHA home loan program to buy a house with little to no money out of your pocket. FHA loans require "you" to have a down payment of 3.5% of the sales price of the home. BUT, you can get this money from a wide variety of sources. For example, if you are a first time home buyer, just about every state, local municipality, and many employers in the US have some sort of first time home buyer or down payment assistance program.

Get A Mortgage With Less Than Perfect Credit – FHA Loan credit requirements are flexible and allow for a few credit account hiccups. It will be on your to prove to the underwriter who is looking at your mortgage application that your credit problems are cleared up and that you are credit worthy.

Under current mortgage industry standards, you will have a tough time getting a Fannie Mae conventional mortgage if your credit scores are less than 660. But with FHA you can get a mortgage with scores less than 660 and it is even possible to get a mortgage without any credit scores if you have other forms of acceptable credit.

If you know that you have poor credit, you may need to look into fixing your credit with credit repair.

Get Money for Energy Efficiency Upgrades and Rehabiliation – FHA has a loan program called the FHA 203K Rehab mortgage. This program allows you to buy a home that needs some physical work and/or energy efficient upgrades. The 203K program will allow you to purchase the home (if you qualify) and borrow money for the needed repairs and upgrades.

Easier Refinance Process – If you get a FHA home loan when you purchase your home, or if you refinance into an FHA mortgage, you can refinance your FHA loan using the FHA Streamline Refinance Program if you qualify. To qualify for this refinance program you must already have a FHA loan and you must be making your mortgage payments on time and have not been late on more than one payment during the previous 12 months.

In normal times, you will not have to get your home appraised, nor will you have to show income or bank account information. However, at the current time (August 2010) depending on the lender you choose to get your mortgage you may have to get an appraisal and show income information in order to do a streamline refinance.

These are some of the benefits you get from using an FHA home loan program. If you are interested in this program, please complete the form below.