FHA Loans are a great option for many first-time buyers due to it's low down payment requirements, modest credit requirements, and many other benefits for homeowners.
You do not need to be a first-time buyer to qualify for an FHA Loan.
Benefits of an FHA Loan
Low Down Payment
The minimum down payment required on an FHA Loan is only 3.5% which makes it ideal for first-time buyers.
Modest Credit Requirements
No do not need to have perfect credit to get great financing terms with an FHA loan.
FHA Loans offer some of the best interest rates even with less than perfect credit scores.
FHA Loans in a Nutshell
FHA Loans are a great product for those that might need low down payment options, have less than ideal credit history, or just need to qualify for a little bit more than some other programs may offer. While you are not required to be a first-time buyer to qualify for an FHA loan, this program was designed with the first-time buyer in mind. It is a government insured loan that allows a great opportunity for buyers to get their foot into the door of a home when other programs might not allow so. With it's low down payment options and forgiving credit score requirements, it allows more opportunity to buy and qualify for more than other programs may offer.
FHA Loans might have a lot of benefits, but they might not be the best for everyone. Firstly the monthly mortgage insurance will stay on for the life of the loan, unless you put at least 10% down payment (then it falls off after 11 years). This product is for primary residences only, meaning you cannot use this program to purchase a rental property or vacation home. FHA has strict property condition requirements which could limit the buyers home search to homes that meet the minimum requirements if the seller is unwilling or unable to improve the property to meet the minimum health and safety requirements set forth by FHA guidelines. Lastly if you are looking for condos, your home search could potentially be severely limited. In order to obtain financing on a condo using FHA financing, the condominium complex must be listed on the FHA Approved Condo Roster. In order to be on the approved roster, the condo complex must complete an approval package and meet minimum requirements set forth by FHA. In some areas it may be very difficult to find a condo that is on the FHA Approved Condo Roster.