| First time homebuyers should do their due diligence | | | | that FHA rates are based on the exact same market |
| with programs that promise them great rates for their | | | | factors as conventional rates. Depending on your |
| first home. But one program that they don't have to | | | | specific circumstances, FHA loans may even be less |
| worry about scamming them is FHA loans. Getting an | | | | expensive than a conventional loan for a first time |
| FHA Loan Mortgage Rate is simple for first time | | | | homebuyer. If you've had credit problems in the past, |
| homebuyers. It allows them to get into a home without | | | | then you are definitely getting a better rate with an |
| worrying about credit problems. | | | | FHA loan than you would otherwise. |
| Despite recent rises in interest rates, FHA loan | | | | The thing that confuses a lot of first time borrowers is |
| mortgage rates are still low. The sub prime mortgage | | | | the FHA required mortgage insurance. If your |
| financing deals may be gone, but FHA loans allow | | | | mortgage covers above 80% of the property that you |
| people to break into the housing market. There are | | | | are financing, then you'll need mortgage insurance. This |
| some common misconceptions about FHA loans that | | | | insurance will pay off a portion of your loan if you |
| prevent a lot of people from trying to own a home. It's | | | | default on it. FHA's mortgage insurance program |
| a pleasant surprise to many that they can still buy a | | | | requires that you put down a 1.5% upfront mortgage |
| home in today's market. | | | | insurance payment, which will automatically be added |
| FHA loans don't take any longer to get approved than | | | | to your loan. You'll also be paying .50% per year, which |
| any other type of loan. There are just a few more | | | | is also divided up and added to your loan amount. |
| documents to fill out than a standard loan, but your | | | | When you compare this to conventional loans that |
| loan officer can help you with those. The extra | | | | have up to 3% per year in mortgage insurance |
| documents are just there to protect you and your | | | | expenses, the FHA loans are definitely the better deal. |
| assets during the financing process. The extra | | | | FHA loan mortgage rates are worth looking into if you |
| paperwork really isn't a hassle when you compare it to | | | | are a first time homebuyer. There are some |
| the opportunity that you're receiving. | | | | restrictions on income, but they are a lot higher than |
| There's also a misconception that FHA loan mortgage | | | | people think. FHA loans are a great option if you meet |
| rates are higher than conventional loans. Be assured | | | | their qualifications. |