FHA Loan Benefits:
- Refinance FHA loans offer cash out up to 85% loan to value
- The minimum down payment for an FHA mortgage is 3.5%
- Flexible FHA loan underwriting allows for lower credit scores
- A higher debt ratio for FHA mortgage qualifying is allowed
- FHA loan rates are comparable to conventional loan rates
- Non-occupant co-borrower may be added to help qualify
- Certain closing costs have limitations for FHA loans
- FHA loans allow a previous bankruptcy after 2 years
- Collection accounts may not have to paid for an FHA loan
- FHA Loans may not have a requirement for cash reserves
FHA loan rates are available in fixed 15 year or 30 year terms. FHA loans have a mortgage insurance premium of 1.75%, which can be financed. There is also a monthly insurance premium that is added onto the payment. Condominiums do not require the up-front premium, only the monthly amount.
