Have you had some recent adverse credit events that may have made your credit less than perfect? Maybe a short sale, bankruptcy, or foreclosure? FHA is a bit more forgiving on their seasoning periods than conventional when it comes to these types of events.
Don’t worry, FHA still offers low interest rates and down payment requirements as low as 3.5%. The upfront costs on these types of loans do tend to be a bit higher and mortgage insurance requirements are a little longer. FHA loans can be used for either purchase or refinance just like Conventional. The loan is insured by the Federal Housing Administration (FHA).
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