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Why Choose an FHA Mortgage

The Federal Housing Authority (FHA) insures loans against default, protecting both lenders and borrowers. It neither makes loans directly nor sets the interest rates on loans it insures. FHA insured loans can be used to purchase new or refinance existing 1-4 family homes, condominiums, or mobile or manufactured homes on a permanent foundation.

Many excellent reasons exist to select an FHA mortgage, particularly if you fit one of more of the following qualifications:

  • You are a first-time homebuyer.
  • You are unable to offer much of a down payment.
  • You would like to have the lowest possible monthly mortgage payments.
  • You have concerns regarding monthly mortgage payments increasing at some point.
  • You have concerns regarding the consequences of falling behind on your monthly mortgage payments.
  • You have concerns about even being able to qualify for the loan in the first place.
  • Your credit is less-than-ideal.

    If any of those factors apply to you, then an FHA mortgage might be just thing for you to apply for. This is because FHA mortgages are insured, offering several protections and benefits otherwise unavailable to you through most other loan packages.

    The benefits of an FHA mortgage include, lower rates, since it’s the Federal Government insuring FHA loans for the lenders, FHA mortgages typically offer interest rates considerably lower than the norm. For this reason alone, it is always worth comparing all other loans available at any given point in time against FHA-insured loans.

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