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Are FHA Mortgage Loan Programs Harder to Qualify For?

Are FHA Mortgage Loan Programs Harder to Qualify For?

An FHA (Federal Housing Administration) loan is an excellent mortgage loan program to consider for both first time homeowners and seasoned buyers. Because FHA loans are backed by the federal government – and because they come in a vast array of options for applicants, it’s easier to find a loan to fit your budget and home buying goals.

From purchasing to refinancing, the peace and mind that comes from a secured loan like the FHA loan is worth the process required to apply for this loan program. But what are the exact requirements? Isn’t it harder to qualify for an FHA loan?

Here are a few common misconceptions and myths about FHA mortgage loan programs:

Myth #1: FHA loans are hard to get.

Many uninformed buyers come into the loan process thinking FHA loans are harder to qualify for. Actually, FHA loans are no more difficult for homeowners to qualify for than other loans. New homeowners who choose FHA loan programs find the process is straightforward and easy to navigate.

Myth #2: FHA loans are more expensive.

The cost involved with FHA mortgage loan programs depends on the current state of the economy, as well as other factors like your credit score. Traditionally, these loans offer rates that are comparable to other loan options. Perhaps one of the most appealing factors of the FHA loans is the smaller down payment required. Many loans require buyers to have at least a 10% down payment ready at closing. With FHA loans, a down payment of 3% or sometimes even less is all that is required.

Myth #3: Closing costs are higher for FHA mortgage loan programs.

Contrary to popular belief, there is really not a huge difference between the closing costs of FHA loans compared to other loan programs. Check with your lender to determine what the closing costs would be for your specific loan.

If you’re thinking about going with an FHA loan, allow our expert lenders to walk you through the process. We help our clients with application queries, credit history, and more, so you can put your best foot forward when applying for FHA mortgage loan programs. The team of loan experts at Midland Mortgage is ready to help you today.

Posted Apr 13, 2016 by Midland Mortgage Corporation