There are several advantages in FHA over Conventional home loans, the main reason is the credit qualifying criteria for the barrower, and it’s not as strict as with the conventional loan financing.  The down payment required is much less and of the tax credit is a bonus when it comes to first time homebuyers.

One plus with FHA loans is that it will allow the borrower who has had a few “credit problems” or those without much of a credit history to buy a home. An FHA Underwriter will require a reasonable explanation of these derogatories, but will approach a person’s credit history with common sense credit underwriting.

Contact me for more information and to discover if FHA is right for your next home loan.

Jennifer Lampe specializes in FHA loans, mortgage loans, and refinances loans in Surprise, Glendale, Peoria and most areas in Phoenix Arizona.   I am licensed to do loans in 48 states, contact me today for a free analysis.

1. Through an FHA loan, borrowers can buy a home by paying very low down payment amount, or no down payment as par the nature and budget of sanctioned loan.
2. People with bad credit score can get these loans much more easily. But they can find it really hard to get approved for the conventional home loans
3. Your friends or other family members can gift your down payment. You may even receive your down payment from several government financing programs. This is a unique feature of FHA loan, which is rare in other conventional mode of financing.
4. Less down payments and also low interest rate. People who do not have a good credit rating will be asked to pay a higher down payment in the case of usual home loans. But FHA loans do not demand such payments
5. FHA Home Loan is the best “100% financing option” with great interest rates. People with lower credits scores are also eligible for FHA Home Loans programs.
6. Easy credit qualifying for great interest rates even with lower credit scores
7. The down payments for these loans will be as little as 3 to 5%. But the conventional home loans would require a payment of up to 20%.
8. Lenders are more secure because of the insurance