Traditional lenders have specific requirements for loan approvals just like the FHA. However, some of the benefits to purchasing a home with FHA loans include: no down payment. FHA loans do not require a down payment. This way it is easier for families to purchase a home who will have no problem making the mortgage payment. But with traditional lenders these same families may have to wait for years in order to save the required down payment in order to qualify for a loan. The FHA accepts gift funds for the down payment of a home. Many traditional lenders do not allow a down payment for a home to come from another source.The FHA allows a down payment money to be given to a buyer from relatives, friends, employers and gift down payment organizations such as Ameridream in order for families to have an easier time coming up with down payment for their home. It’s easier to qualify for an FHA mortgage loan than with a traditional lender. The FHA has certain requirements, but they are more lenient with buyers because the FHA is guaranteeing a percentage of the loan which makes it easier to qualify for a mortgage than if you’re applying with no guarantee. The terms are more favorable with an FHA loan. Usually, FHA mortgages loans have some of the lowest interest rate available on fixed rate loans. This translates into overall savings for the buyer who will pay less for the home, than if they’ve obtained a mortgage with a traditional lender. FHA mortgage loan have a lower cost for obtaining a mortgage. The FHA only allows certain fees to be charged by the approved lenders and there is usually a cap for how high these fees can be. Many lenders charge more fees and higher closing costs than FHA lenders so people financing their home with an FHA loan usually save a lot of money on closing costs. Your credit does not have to be perfect to get an FHA mortgage loan because of the guarantee of an FHA loan credit requirements are less strict. You can qualify for an FHA loan even if you have declared bankruptcy in the past.
