FHA Home Loan

FHA mortgage loan programs are designed to help people with lower credit scores or less cash available for a down payment become homeowners. The Federal Housing Administration (FHA) insures these loans, which are available through approved lenders. FHA loans typically have lower down payment requirements and more lenient credit score requirements compared to conventional loans, making them a popular choice for first-time homebuyers.

Pros:

1:  Lower down payment requirements: FHA loans typically require a down payment of only 3.5% of the purchase price, compared to the 20% required for most conventional loans.
2:  Lenient credit score requirements: FHA loans are available to borrowers with lower credit scores, making homeownership more accessible to those who may not qualify for conventional loans.
3:  Assumable loans: FHA loans are assumable, which means that if you sell your home, the buyer can take over your loan instead of having to obtain their own financing.
4:  More flexible debt-to-income ratios: FHA loans allow for higher debt-to-income ratios compared to conventional loans, making it easier for borrowers to qualify for a mortgage.
5:  Streamlined refinancing options: FHA loans offer streamlined refinancing options, which can make it easier and less expensive for borrowers to refinance their mortgage.

Cons:

1:  Mortgage insurance premiums: FHA loans require mortgage insurance premiums, which can increase your monthly payments and add to the overall cost of the loan.
2:  Lower loan limits: FHA loans have lower loan limits compared to conventional loans, which may limit the amount of money you can borrow.
3:  Property restrictions: FHA loans require that the property being purchased meet certain requirements, which may limit your options when it comes to purchasing a home.
4:  Longer closing times: FHA loans may take longer to close compared to conventional loans, which can be frustrating for borrowers who are eager to move into their new home.
5:  Higher overall costs: While FHA loans may have lower down payment requirements, they may have higher overall costs due to mortgage insurance premiums and other fees.

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Fairway Mortgage, LLC
NMLS #2767473

Office: (541) 654-8285
Cell: (541) 513-9000
Email: contact@fairwaymortgagellc.com
350 West 5th Avenue
Eugene, OR 97401

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