An FHA loan is a great option for a lot of people in the market for a home mortgage but know the pros and cons to one before you sign on the dotted line.

PROS:

Low down payment 3.5% of the sales price.

Low credit score require, down to as low as 580.

Down payment can come as a gift from a relative.

Lower interest rate than a conventional loan about .5%

Debt to income ration up to 50%

CONS:

FHA charges a funding fee that is added to the loan amount, 1.75%

Mortgage insurance is required .85% of loan amount per month

Mortgage Insurance is for the life of the loan.  Charged monthly until the loan is paid off, refinanced to a conventional loan or home is sold.

Only allowed 1 FHA loan at a time and is for a primary residence only.

 

If you feel an FHA loan is right for you or you would like to get more information contact Bruce Singer with Vision Home Mortgage at 702-217-5525 or fill out the form on this page.