Top 3 Conditions of the FHA Home Loans Which Make It So Popular
There are several people like you who might want to own a house in their name. And it is an important and useful investment which will benefit you in more ways than one. However, even if you find the houses that you need and the ones that suit your taste and personality, it might be difficult to fund the house you desire. It has become imperative to lookout for options which will enable you to finance your house. One of the most common out of these is a home loan. You need a home mortgage option which will not just meet the sort of amount you need to purchase the house you want but will also be feasible for your budget so that you can repay on time. There are various kinds of home loan options for the first-time home buyers. One of the options that you can opt for is the FHA loans backed by the Federal Housing Administration(FHA).
The FHA loans under the Federal Housing Administration department are so popular because of their flexible eligibility criteria. The conditions they offer for loan approval are easy and allow you to easily fund the house that you want at the earliest. Here, we have put together a few essential conditions that make the FHA loans so popular. Take a look.
- Credit Score
First of all, the biggest advantage that the FHA loan conditions offer is the flexibility with credit score. Usually, most of the people cannot opt for a certain home loan because of their inability to meet the credit score requirement. But the FHA loans can offer a loan program to those who have a credit score as low as 500. In fact, these mortgage programs also have a provision for those loan aspirants whose credit scores are even lower. So, if you do not have a decent credit history or want to opt for FHA loan 500 credit score Texas, then you can opt for this home mortgage program.
- Down Payment
Another common yet most important factor that all lenders pay attention to while providing a home loan program is the down payment. You must have a good amount of down payment ready to pay for the house you desire. Generally, most of the loan programs pose some restrictions on the down payment. You cannot obtain these from everywhere. But the FHA loans approve amounts from your own savings, loan from relatives and friends, and even the down payment assistance grants from the state or local governments. This has made it easy for the loan aspirants to obtain the mortgage program.
- Closing Costs
You must be aware of the different closing costs that you have to pay for while applying for a home mortgage program. Right from the escrow reserve requirements to the origination charges or the title expenses, there are various kinds of costs you could be subjected to. The FHA loans allow you to share these costs with your builder, seller, or the lender of the loan program at a higher interest rate. This is a great advantage that the FHA loans offer, making it easier for the loan applicants.
And if after knowing about these conditions, you feel that you also want to finance your home with this type of a home loan, then you must lookout for the FHA loans today without any delay.
Author Bio: Joan Gallardo, a Senior Loan Officer, with 20+ years of experience, here writes on 2 questions to ask the best mortgage lender in Houston when you are about to choose one of the first time home buyer programs in Houston.