Learn This Beginner’s Guide to FHA Loans

• Consider putting down a higher deposit. You may not want to spend more out of pocket than necessary, but raising your down payment may lower your principal and possibly your MIP.


• Pay off your debts. Lenders usually give better terms to borrowers they deem to be less risky. The lower your debt-to-income ratio may be, the better off you will be.

• Request that the seller reimburse the closing costs. Closing fees vary by lender, but they are a necessary expense when purchasing a property. It’s fairly typical to request that the seller cover your portion of the fees. While this will not directly reduce the amount of your loan, it will provide you with additional funds to put down.

Is an FHA loan appropriate for you?

For consumers who do not qualify for a standard home loan, an FHA mortgage is an excellent option. Here are five critical things to ask yourself before making a decision:

1. Will you make the house your primary residence?


2. Are you seeking a loan with low-interest rates?

3. Is the purchase price of your home within the FHA loan limits?

4. Do you only have a small down payment?

5. Do you have less-than-ideal credit?

If you responded yes to all of these questions, you might be an excellent candidate for an FHA loan. There are numerous aspects to consider when applying for any form of a loan. One of the best things you can do is speak with an expert Home Lending Advisor about your alternatives.