Are FHA Loan Rates Really Competitive?
Mostly all mortgages in today’s market require 20% of down payment, which is of course a huge amount for normal earning families. FHA loan, compared to this requires from 3% to 5% of down payment which makes the amount much lesser and feasible to pay. Another main advantage of FHA is that unlike other mortgages, it does not require any credit history except the fact that the borrower should not have filed bankruptcy in the last 2 years of applying for FHA and that the borrower should not have faced a foreclosure in last 3 years of applying for FHA. Else the borrower shall have to wait till completion of 2 or 3 years respectively. Yet another big advantage with FHA loans is that 50% of the closing costs have to be absorbed by the lenders and the rest 50% is added in the principal amount. This helps the borrowers to get rid from the burden of huge closing costs which many might not even be fully aware of. By doing this, the closing costs can also be paid over the loan term in smaller par
