Federal Housing Administration or FHA provides loans that are easy to qualify than other conventional loans. The housing market is in a good condition for the buyers because of the decrease in property rates and interest on loans. It is the best time to buy homes for people who are always struggling with credit problems and are unable to qualify for conventional loans.
Some of the best features of FHA loans are:
· Credit requirements are easier to qualify
· Down payment is much lower than other loans
· Most of the closing costs can be included in your mortgage
· A provision for Rehabilitation Loan
· Special provision for manufactured and mobile homes
· Special loan for making your home energy efficient
The FHA loan is majorly for those people who find it very difficult to qualify for the conventional loans but there are still certain aspects where some people can find themselves struggling to qualify. You can take a look at all the terms and conditions on the official website for FHA loans. The first time home buyers are the most lucky when applying for FHA loans because the down payment for them is just 3.5% of the whole cost.
The government is back to work now and if you are planning to buy a home, then you can go in for an FHA loan. It will be the best decision for those people who are not having at least 20% of the home purchase price as down payment. The loans are not provided directly by FHA but through approved lenders and are guaranteed by FHA.