AmeriSave: The Advantages of an FHA Loan

Providing a variety of FHA-backed and other types of loans with
fixed- and adjustable interest rates, AmeriSave serves customers in 49
states. The company offers a simple, online application and approval

If you are a potential homebuyer looking for a stable
mortgage with a low down payment and flexible credit requirements, a
loan backed by the Federal Housing Administration may be the best choice
for you.

While FHA mortgage loans often feature higher mortgage
insurance rates than other types of loans, they can provide other
significant advantages. An FHA loan may be easier to obtain in a
difficult real estate market, particularly for borrowers with low
incomes or a less-than-perfect credit history.  Lenders that offer
FHA-insured loans may be more open to looking at a client’s overall
financial picture rather than focusing on a single negative piece of

The FHA requires that the financed property be the
client’s primary residence and be occupied by the owner, rather than an
investment or rental property. Yet the property does not necessarily
need to be a single-family home: Townhomes and condominiums are also
eligible, provided that their associations receive FHA approval.

down payment on an FHA loan may be as little as 3.5  percent of the
total amount financed.  While the FHA lists its minimum credit score for
borrowers as 500, some lenders may have more stringent credit score
requirements than the FHA itself. In addition, credit issues such as a
late bill payment may result in disqualification.

If a borrower
has little or no credit history, an FHA lender will weigh other factors
that include his or her utility and rental payment history. If the
borrower has been enrolled in a credit counseling program for at least
one year and made all required payments in a timely manner, he or she
can become FHA-eligible.


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