Key Benefits of FHA Financing
As you’ve probably already learned, FHA financing and FHA home loans offer plenty of benefits and advantages to a broad range of prospective home buyers. So if you’re thinking about buying a home or condo in Minnesota, or if you’re looking to purchase a home for the very first time more specifically, here are just some of the key benefits FHA home loans provide borrowers:
Low Down Payment
Saving for a down payment is challenging, especially if you’re already paying rent. But FHA loans only require 3.5 percent down, helping thousands of soon-to-be-home buyers secure the proper financing they need.
Relaxed Credit Score Requirements
If you have a lower credit score, it can take years to build it back up, ultimately delaying the purchase of a new home significantly. But with FHA financing, all you need is a minimum credit score of 580 to qualify.
Lower Interest Rates
With a lower credit score and a limited down payment, borrowers run the risk of having a higher interest rate. But federally-backed loans with mortgage insurance help keep interest rates low, like FHA loans specifically.
Refinancing
Did you know that you don’t necessarily need to be buying a new home to take advantage of FHA financing? Prospective borrows can also refinance their existing home using FHA loans as well.
Financing Choices Available
Although FHA home loans are backed by the government, borrowers can still use a private lender to fund the loan, allowing you to shop around and ultimately get the best deal possible.
