When preparing to buy a home, choosing the right type of mortgage is crucial. An FHA government-backed home loan is a great option for a lot of buyers, but it won’t be the best choice for everyone.
The type of mortgage you choose can significantly affect your monthly costs.
If you have bad credit, an FHA loan could be the answer. But what is the lowest acceptable credit score for an FHA loan?
Saving a down payment can be difficult, and the FHA allows less money down compared to some other options. If you have found it difficult to fund a down payment, this type of loan can be attractive. Despite these advantages and more, this mortgage won’t be for everybody.
If you are considering using the FHA loan program, knowing the advantages and the downsides will help you decide. We look at the pros and cons of FHA loans for home buyers, to help you make a more informed decision.