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FHA on the Rise. Millions are Now Choosing FHA
Since 2005, the FHA loan Program has seen incredible growth, over 900% growth in fact. The Federal Housing Administration has made some key changes making it more popular than it has ever been. FHA maximum loan limits have been raised across the board and housing prices are in a slump. This means that a higher percentage of homes qualify for FHA financing than ever before!
These FHA Loan requirement changes mean millions more can now qualify for an FHA Loan, one of the best choices for prospective home buyers in today's market.
Key Benefits of an FHA Loan
What makes the FHA Program unique is the variety of benefits it offers to borrowers, particularly First Time Home Buyers. When compared to a conventional loan, FHA becomes a much better deal for borrowers.
Key FHA Benefits
- 3.5% Down Payment
- Low monthly mortgage insurance
- Low, government-capped closing costs
- Relaxed credit score requirements
- Quicker qualify post-bankruptcy
National Refinance Rates
FHA Allows for a Blemished Credit History
In today's tight lending environment, an FHA is often the best choice for borrowers with pas credit issues. Many borrowers find it much easier to qualify for an FHA Loan. Borrowers can have lower FICO scores, some blemishes on credit and don't need to put as much money down.
- Lower FICO Scores OK - FICO scores can be lower for FHA than they can with a conventional loan.
- Bankruptcy - The FHA only requires a 2 year waiting period after a bankruptcy. Just 1/2 of the 4 year waiting period for a conventional loan.
- Foreclosure History - FHA required a 3 year waiting period after a foreclosure compared to the 4 year waiting period for a conventional loan.
