When it will come to the qualifying of the home loan, there are actually different types of the program that can be available. It can be very necessary for you to choose into the particular kind of the mortgage loan needs with that of the different kinds of the home loan that you have. The FHA mortgage is one of those that you can be able to choose from among those variety of the home programs that is available. This kind of the program is being designed for those first time buyers. The FHA home loans can actually be used to be able to purchase into the primary residence or that of the refinance an existing kind of loan.
To be able to minimize the down payment then you need to go for the FHA mortgage. The FHA mortgage loan can be able to offer the buyer’s a certain program with that of the lower down payment. The current minimum down payment for that of the FHA loan is actually 3.5 %. By allowing the down payment to be able to come from that of any different sources, then the FHA mortgage loan program can be able to help the buyers to purchase the new home.
Another benefits is that the seller paid the closing cost. The good thing about this is that the seller will be allowed to contribute 3% to that of the buyer’s closing cost. This can be very important most especially towards the assisting of the client purchase of the new house and reducing the amount of the money that will be needed for the closing. It is good since the sellers will be able that of the closing cost and also the prepaid items like the taxes and the home insurance together with the interest of the loan.
Finally, the good thing about the FHA mortgage loan is the mortgage insurance. Another benefit is the approval of the insurance for the mortgage loan. Once that the mortgage is being approved already , then the FHA mortgage insurance can then be approved also. This is actually not the same when it will come to the conventional home loan. Some fail or not be approved for the mortgage insurance but they are being approved in to the conventional mortgage. The monthly mortgage insurance payment for the FHA mortgage is actually less than that of the private mortgage insurance being offered into the conventional home mortgage loans.