Is it a good idea to get a FHA loan?
FHA loans come with many benefits, including easy credit requirements, small down payments, and flexibility in the type of property you can buy.
They can be a good option for first-time homebuyers and consumers with credit and cash-flow issues..
What is the downside of a FHA loan?
Higher total mortgage insurance costs. Borrowers pay a monthly FHA mortgage insurance premium (MIP) and upfront mortgage insurance premium (UFMIP) of 1.75% on every FHA loan, regardless of down payment. A 20% down payment eliminates the need for PMI on a conventional purchase loan.
Can you buy a new house with FHA loan?
Many homebuyers are surprised to find that FHA loans can be used to finance a variety of property types, including new builds. FHA new construction loans are a good option for any homebuyer who isn’t able or willing to make a large down payment on a home.
How hard is it to get a FHA loan?
Still Not as Hard to Obtain as a Conventional Loan That doesn’t necessarily mean it’s easy to qualify. You still need to be a well-qualified borrower in all respects. You need a good credit score, steady income, manageable debt, and a down payment of at least 3.5%.