FHA loans have been around for many years, and with its flexible credit guidelines and down payment requirements, it’s no wonder that FHA remains a great option for many homebuyers. However, with those guidelines and requirements come a lot of questions.
At Guaranteed Rate, we know that researching your options is important when deciding on your home loan, and the more information you know ahead of time, the better. That’s why, this week we’ve been focusing on all the major concerns that come with a FHA loan on our Facebook page.
So what do you need to know before considering a FHA loan? Four things:
1. Understanding if you qualify for a FHA loan
FHA looks for specific qualities in the borrower they lend to. Make sure you understand exactly what those qualities are and if you meet them.
2. FHA recently changed their rules
In an effort to ensure the future of FHA’s insured mortgage loan, the Federal Housing Administration was forced to increase their mortgage insurance fees last year. Understand how these fees would affect your home loan before applying for a FHA loan.
3. FHA 203k mortgage loan is a great tool for remodeling
If you’re thinking of rehabilitating or remodeling your home, but a construction loan is not a financially viable tool for you, then a FHA 203k may be your best option. See what types of properties are eligible for this competitive and innovative financial tool.
4. Lastly, understand the FHA mortgage loan process
Whether you’re getting a regular FHA loan, a FHA streamline refinance, or a FHA 203k loan, it’s important you understand the entire process and what you need to prepare ahead of time to make it go smoothly.