Perks Of Applying For FHA Mortgage Loan

When it comes to qualifying for a home loan, there are many different kinds of programs available. With the many different home loan programs available, it is necessary to choose the best program for your particular mortgage loan requirements.

One of the home programs you can take from Windsor Mortgage is an FHA mortgage. This type of program is designed for 1st time home buyers. FHA home loans can be applied to purchase a primary residence or refinance an actual home loan.

Below are the many benefits to the FHA program:

Reduce Down Payment

Darrin from OMAC Mortgages Windsor and Essex County

An FHA mortgage loan offers users a program with a lower down payment. The current lowest down payment for an FHA loan is 3.5%. The source of the funds for the down payment can also come from many sources including a gift from a family member or church, a 401K loan or withdrawal, and any money saved up in a checking or savings account. By allowing the down payment to get from many different sources, the FHA mortgage loan helps buyers buy their new house.

Seller Paid Closing Cost

FHA loans also enable the seller to provide up to 4% towards customers closing cost. This is extremely valuable in assisting a client purchase a new home and reducing the amount of cash needed for closing. 

First Time Mortgages

Lower Mortgage Rates

For many people, FHA home mortgages give the best rates. FHA loan rates are not tied to credit scores like the way conventional mortgage rates are. For example, if a client has a credit score of 560, the FHA home loan the rate would be same if their score was 640, but on a conventional home loan, the credit score of a 560 compared to a 640 would see an increase of about.75% to the rate.

Type the query ‘Mortgage Rates Windsor‘ to know more about the rates of the mortgage. 

Mortgage Insurance

Another benefit in the FHA mortgage loan program is the consent of mortgage insurance. FHA mortgage insurance is accepted as long as the mortgage is accepted. This is not the same when it comes to a conventional house loan. Many times, a home buyer can be allowed for a conventional mortgage, but will not be approved for mortgage insurance.