Many first time home buyers use the Federal Housing Administration (FHA) to get a loan with a lower down payment and other lending requirements that are more accommodating. Before you apply, here is what you need to know about buying a home with an FHA loan.
Why Do People Apply for FHA Loans?
Getting a traditional mortgage is not always easy for home buyers, especially for people buying their first home. Saving up for a down payment of 10 percent could be very difficult for someone with limited funds. FHA loans are designed to provide some minor accommodations to buyers who would not be able to buy a home otherwise. FHA loans offer more flexible requirements on:
- Minimum credit score for approval
- Maximum debt-to-income ratio for