| Mostly all mortgages in today's market require 20% of | | | | amount. This helps the borrowers to get rid from the |
| down payment, which is of course a huge amount for | | | | burden of huge closing costs which many might not |
| normal earning families. FHA loan, compared to this | | | | even be fully aware of. By doing this, the closing costs |
| requires from 3% to 5% of down payment which | | | | can also be paid over the loan term in smaller parts |
| makes the amount much lesser and feasible to pay. | | | | making the process easier. |
| Another main advantage of FHA is that unlike other | | | | FHA mortgage rates remain more or less similar to the |
| mortgages, it does not require any credit history | | | | interest rates of fixed rate mortgage loans. FHA loans |
| except the fact that the borrower should not have | | | | can be of fixed interest rate kinds and also of |
| filed bankruptcy in the last 2 years of applying for FHA | | | | adjustable interest rate kinds. The Federal Housing |
| and that the borrower should not have faced a | | | | Administration sees to it that the lender easies out |
| foreclosure in last 3 years of applying for FHA. Else | | | | certain rules and conditions on particularly certain kinds |
| the borrower shall have to wait till completion of 2 or 3 | | | | of loans. Lenders who provide FHA loans can be |
| years respectively. | | | | searched quickly through search engines. |
| Yet another big advantage with FHA loans is that 50% | | | | All these benefits can make us conclude that a FHA |
| of the closing costs have to be absorbed by the | | | | loan rate is quite competitive to other existing |
| lenders and the rest 50% is added in the principal | | | | mortgage interest rates. |