We will assist to approve your Government FHA Loan!
FHA loans are issued by approved lenders and are intended for borrowers that have a low to moderate level of income. These loans are backed by the Federal Housing Administration and make securing loan easier for people with a lower credit score and who cannot pay a standard 20 percent down payment for a conventional loan.
The FHA loan lets you borrow a substantial amount of the value of the home. Thus, if your credit score is a 580 or above, you may only be required to put down as little as 3.5 percent. If your credit rating is lower than a 580, you may still qualify for a loan with a 10 percent down payment. Down payments for this loan can come from your savings, as a gift, or through an assistance program. These aspects make the FHA loan very popular among first-time home buyers.
FHA Mortgage Insurance
As an added protection, your lender will require you to pay two types of mortgage insurance.
Benefits of an FHA Loan
Since you are required to pay added insurance premiums, the lender is able to allow you to pay a smaller down payment. This is because the insurance helps protect the FHA if you were to default on your mortgage payment.
FHA home loans Bend Oregon also make it easier for you to qualify for a loan. The requirements are not as strict as with other loans. A lower credit score does not automatically disqualify yours from securing a loan. Smaller down payments and a more flexible debt-to-income ratio also make it easier to qualify.
Another aspect that many find attractive is the fact that your insurance premium will not be affected by a bad credit score. So, whether you have a score to brag about or a score that is cringe-worthy, your rates will not be influenced and will be lower than what you would pay on conventional home loans in Oregon.
Disadvantages of an FHA Loan
Any loan will have a downside, and the FHA loan is no exception. The total mortgage insurance associated with FHA Loan Requirements is greater than any other low-down payment loan. Though it is a very small increase in the monthly amount you will pay, over time it adds up.
The insurance gives you another little road bump. Unlike conventional mortgage insurance that you can cancel once you have built up enough equity in your home, you cannot get rid of the required FHA mortgage insurance. According to the FHA loan requirements, you are stuck with it for the life of your loan.