Purchasing a home is one difficult task that one has to do, more so in cases where you do not have enough money to pay for the house. But luckily with increased technology, there has been an establishment of lending specialists who make the task of buying a house easily by giving out mortgage loans that can enable you to buy the dream home that you have always wished for. Some of the loaning specialties are banks, Sacco credit saving, and FHA 203k. However, over time the HFA loan specialists have been preferred because of the excellent deals that they have for their mortgage loans. In this article, we give you the benefits if securing a home through the FHA mortgage loan.
One of the benefits of seeking for FHA mortgage loans is that it allows its customers to use the gift funds that they have to pay for the down payment and also the closing costs. For instance you lack the given percentage of down payment that they gave you but you have relatives or friends who have the amount and want to gift you, the 203K lenders will allow for that.
Smaller down payment
The biggest advantage of FHA mortgage loans is that they allow their clients to give a down payment of up to 3.5% of the value of the home that you wish to buy. This is totally the opposite of most banks that ask for a down payment of up to 20% of the value of the house after you have discussed with the seller. This kind of loan will help the individual who is not in a position to raise the down payment.
Credit history is not important
If you are the individual who has a credit history that is blemished, you will not need to worry about that when you are going to request for an FHA mortgage. This is because the FHA loan lenders can accommodate such histories. However, if you have several foreclosures, late payments, legal judgments and tax liens, then you will not qualify for the mortgage loan so easily. You will only be granted the loan if your case is an isolated one because the loan specialist will try to make some exceptions.
The fourth benefit of FHA loans is that they are assumable. For instance, if you want to sell your house before completing the mortgage loan then you will be able to do so. The buyer of your home will assume the mortgage loan with all the loan requirements that were outlined to you.