14 Aug 2018
Posted by admin 
Now that you are ready to buy a home, you can be sure to receive pieces of advice from everyone. One of the areas you are sure to get confused is on the FHA mortgage loan because everyone has their opinions and beliefs about it. Unfortunately, these misconceptions discourage several people from accessing this loan facility.
FHA loans were created in 1934 with the objective of offering affordable and safe mortgage financing. Wasatchpeaks.comshares some information to debunk these myths.
Myth #1: It’s hard to qualify for FHA loans
Quite the opposite, FHA loans are easy to be eligible for because they aren’t as restrictive as other loan types. FHA loans have a goal of providing funds to borrowers, including first-time homeowners who have limited funds or lower credit scores. But that doesn’t mean they only target borrowers with low credit ratings.
Myth #2: FHA loans don’t require insurance
This other misconception is a common one that has landed people in trouble. FHA loans require two types of insurance. The first type is the upfront premium that is typically paid on the amount of the loan, which can also be financed as part of your loan. The other type is the annual premium, which is paid by the buyer in monthly installments.
Myth #3: FHA loans are limited to single family homes
On the contrary, the FHA loan offers to finance to anyone who wants to buy a house, including condominiums. You can get an FHA loan regardless of the home you want to purchase, as long as your application is approved. In fact, you can even buy modular homes using this loan facility.
Having gone through these myths, you are now equipped with the right information. You can make a good decision about your home mortgage without being misguided by other people.
