3 Top Benefits of Securing a FHA Loan

3 Top Benefits of Securing a FHA Loan If you are thinking about buying a new home, you are probably looking for the best ways to finance your mortgage. With so many loan options available on the market today, it is easy to become overwhelmed with choices. Thankfully, there is a lot of great information on the different types of loans, and the advantages of each. One of the most important is learning which type will be the best fit for your personal needs and preferences.

That being said, here are 3 top benefits of applying for an FHA loan today.

1. FHA Loan - Easier to Qualify For If you survey the local FHA mortgage lenders, you will find out that this loan is one of the easiest to get. It is a government loan that does not have strict credit qualifications like the conventional loan lenders require. So, if you do have a bad or poor credit score, you can still qualify for a fha loan with a minimum score of 500.

2. Negative Credit -- shorter Time Periods for qualifying It is more challenging to secure a loan for a home when you have had a bankruptcy on your record.

This is especially true for those of you who are looking for a conventional loan since the credit score rules and guidelines are a lot higher.

On the other hand, if you are applying for a FHA loan, the past bankruptcies and foreclosures on your record can be eliminated from the qualifications, if both have been discharged within 2 years.

Unlike the conventional loan requirements, the discharge date must be after 4 years have past.

3. Low FHA Loan Down Payment Another benefit of the FHA loan is related to the down payment that has to be secured. This is because the down payment for a FHA loan is lower for a first time home. You can also seek help for the down payment (3.5%) that is needed from a wide range of resources, including a friend, family member or a charitable organization.