FHA loans are my favorite, for the simple reason that it is easy to get approved without having excellent credit, unlike Conventional loans. FHA programs has its drawbacks, but when it comes to saving a transaction, it is the number one and most used program in the United States to purchase primary residences.
FHA programs are the least used for refinancing since homeowners always want to eliminate Mortgage Insurance and FHA always has it for life.
Who can qualify for an FHA loan?
All residents of the United States can qualify (it is not necessary to be a citizen or permanent resident, but they must have legal status) to buy or refinance a primary residence, this type of loan is not for investors.
You may qualify for an FHA loan if you have debt or a low credit score. You may even be able to get an FHA loan with bankruptcies or other financial issues on your credit report.
Is a Conventional or FHA loan better?
Conventional loans are better if the client has a good or excellent credit history because their mortgage rate and Mortgage Insurance costs will decrease. But FHA loans may be perfect if your credit score is between 500 and 600. For buyers with lower credit, FHA is often the most affordable or feasible option.
Reasons Why Sellers DO NOT Like FHA Loans
Both of these reasons have to do with the strict guidelines imposed by FHA loans, which are insured by the government. But they are all myths, the real restriction is that the property cannot be financed by FHA if it is not even 90 days after being purchased by the current owner.
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For more information about the types of FHA loans, you can contact me by sending me a message through WhatsApp or through my Contact Page and I will gladly assist you with my best advice.
