Many people think FHA stands for First-time Homebuyers Association. It doesn’t. FHA stands for Federal Housing Administration. Why is this important? Because FHA does not require you to be a first time home buyer to use their services. FHA will also refinance your current mortgage and they offer cash-out financing on your current home.
Some advantages of choosing an FHA loan are as follows:
They will not only accept fair to bad credit (580 credit score and above), but they also will give you a tremendous rate with a low credit score. Conventional loans will charge you massive fees for a low credit score. FHA will charge you a very similar rate as they would someone with a good to excellent credit score. There is a difference, but the difference is massive with conventional vs subtle with FHA.
They only require you to put 3.5% of your purchase price for a down payment.
They finance all types of properties, even duplex’s and 4 plex’s. As long as you live in one of the units, they will finance it. They will also help you rebuild damaged homes and let you finance it.
They will allow your family to “gift" your down payment, meaning they can basically pay for your home for you.