FHA loans are the most common type of loan for most home buyers because it is the easiest to qualify for. The main reason why it is the easiest to qualify for is because the loan is guaranteed by the government. This makes this type of loan very attractive to lenders. One of the biggest reasons many choose a FHA loan is because it does not require a large down payment at closing. For first time homeowners this can be a huge plus.
FHA home loans only require a low 3.5% down payment. Because many first time home buyers that us this type of loan are younger, and likely have more debt, this low down payment makes it much easier to own a home. It is also important to know that the FHA is more forgiving on things like student debt or other minor debts than different loan types might be.
Many people read the above and think “OK, so this is great if I was buying my first home, but what about me?” FHA home loans are not just for first time home buyers, for most people it will be the only type of mortgage they ever have. One of the major qualifications is that the mortgage not be greater than 29% of your monthly income. So you can see why this is the most popular home loan on the market.
If you thought that’s all FHA loans had to offer, you would be wrong. In addition to all of the aforementioned ways to get you into the home of your dreams, you can often build the closing costs into your mortgage, which is usually 2% to 3% of the loan. You will pay slightly more for this over the course of the loan, but this eliminates most barriers to home ownership for just about everyone.
If you are interested in a Minnesota FHA mortgage or would just like more information, I encourage you to contact me with the contact form on the right. You can also call me at work at 763-400-7537 or on my mobile at 952-807-8532. Most of the loans I issue are FHA, so I have experience in finding the best FHA home loan at the lowest rate possible and possibly even with no closing costs due at closing. I am a fully licensed mortgage broker for the state of Minnesota, with the experience necessary to get the best loan for you.