What is a US Bank FHA Mortgage Loan?
An FHA mortgage loan is a Home Loan backed up by the government, with much flexible lending requirements and more benefits versus the regular conventional loans. Due to this, the interest rates for FHA mortgage loans may be higher, but the long term benefits of FHA mortgage loans are unbeatable. Also, the buyer needs to pay monthly mortgage premiums alongwith their regular monthly loan payments.
Requirements and Eligibility Criteria
- Loan Amount – FHA mortgage limits vary by countries and states.
- Down-payment – FHA loan requires a minimum down-payment of 3.5%.
- Conditions for Property – FHA loans requires that the hosue being purchased, must meet certain requirements and be appraised by an FHA-approved appraiser. New FHA loans are only available for houses that’ll be used as the buyer’s primary and main residence.
Benefits and Considerations
An FHA mortgage may require a down payment as low as 3.5%, although the interest rate may be somewhat higher versus the conventional mortgage.
Lower Credit Threshold
One of the major benefits of the FHA Mortgage Loan is that house buyers may qualify even without a outstanding credit or long credit-history.
Many borrowers with adjusting ARMs needs to refinance into a fixed-rate FHA loans.
An FHA mortgage may turn out to be a good fit for you, if you have limited cash for a down-payment or if your credit is not upto the requirements of a conventional loan.