VANDYK MORTGAGE FORT MYERS
FHA MORTGAGE
FHA Loan
Best for:
First time homebuyers with less-than-perfect credit.
What it is:
FHA loans are loans insured by the Federal Housing Administration. With a down payment as low as 3.5% and interest rates generally lower than conventional loans with the same terms, this type of loan is perfect for those who may not meet the qualification factors required for a traditional conventional loan program. FHA loans encourage home ownership, by providing affordable housing opportunities with low down payments and flexible credit requirements.
An FHA loan is particularly beneficial to those borrowers with less cash available to them, because of their allowance of gift funds and seller credits in the transaction.
FHA Loan Pros and Cons
Pros:
3.5% down payment
Easier credit and income qualification
Up to 6% in seller credits allowed
Gift funds available
Cons:
Required Upfront and monthly mortgage insurance
Mortgage insurance is permanent for life of loan.