Home refinance with poor credit | What can a FHA loan do for you

The FHA has been around for quite a long while since 1934, and they have insured over 35 million loans. FHA does not issue you a mortgage loan, they are insured by them. They guarantee your loan if you dont pay the lender gets paid by fha. In 2006, there was a update to FHA it made it possible for FHA to help more families buy a home. The FHA mortgage rates then were around 5.5%.

Today’s current FHA mortgage rates . The interest rate is 4.25% for a 30 year fixed loan. The interest rate for a 15 year fixed loan is 3.75%. An FHA loan may be your best option for a few reasons. First, you don’t need perfect credit to quality the loan. Since the sub prime crash, lenders are down right stingy who they loan money to. If you have average credit score it’s no longer good enough. But, depending on your debt to income ratio, how much money you make, you can probly qualify for a FHA loan.

Another problem holding people back is bankruptcy. FHA loans consider people that have previous bankruptcy, again it depends on your situation. The best way to get financed, if you have bad credit or bankruptcy, Meet with a credit professional. They often are able to help improve your credit score, and help with debt to income ratio.

An FHA mortgage loan often requires a lower down payment this depends on your credit score. If you have a credit score below 580, They require 10% down. Have a lot of money for a down payment, often it’s better to use that money to invest. FHA is there to help responsible people own a home.

About The Author Hi my name is leona smith i am with a local firm i am a loan research specialist.