Homeownership is a huge milestone for anyone. House rates and prices today, however, have increased drastically and make it more difficult for people to buy one right away. Often, they go for a loan since they assure having your own home without spending a huge amount of money right away.
Aside from regular loans, there are others supported and created by the government to ensure easier mortgage applications among Americans. The U.S. Federal Housing Administration (FHA) Department has been helping residents afford new houses and helped them realize the dream of homeownership since 1934.
Though there are requirements for FHA Loans, Wasatch Peaks Credit Union noted that they are not as strict as those from conventional loan companies. Here are the benefits of acquiring FHA Loans:
Lower Down Payment
One of the drawbacks of conventional loans is the down payment is too huge that some people find it difficult to pull off. FHA loans are only 3.5% compared to at least 20% of traditional loans. Moreover, you can ask relatives to pay it for you. On the other hand, conventional loans require you to cover the full down payment yourself.
Approved Even With Weak Credit
FHA loans are often approved even for those with bad credit and other credit problems. Conventional loans, on the other hand, are stricter and harder to get with a bad and weak credit. Hence, going for an FHA loan will make it easier for you to buy the house of your dreams.
FHA loans have helped many people acquire their own houses easier than ever. However, even with easier terms and fewer requirements, it’s recommended to work with an experienced realtor to guide and help you throughout the process. The bottom line: FHA loans make life easier for Americans who want to start a new life in a new house and property.