FHA loans offer very competitive rates. They are generally similar to, if not lower than, rates on conventional loans. Lenders can offer these great rates because the loans are insured by the Federal government. This means that any risk involved with your loan is taken on by the FHA, not the lender. This allows you to get lower rates for the following loans:
Purchase mortgage with less than 20% down payment
If your credit is less than perfect or under 740
If you need a co-signer
Refinance of a current FHA loan
Purchase or refinance of a 3 or 4 unit property
Lower rate of mortgage insurance than conventional
FHA can offer better rates for these and other loans because the lender does not absorb the risk. Therefore, they do not have to pass that risk along to you. In fact, Fannie Mae, the backer of most conventional loans, has recently announced new rate adjustments for borrowers with credit scores below 740. FHA does not have these adjustments.
If you fall into any of the above categories, or have less than stellar credit, you should see what an FHA loan could do for you. FIRST TIME HOME BUYERS >
Equal Housing Opportunity, AmCap Mortgage, Ltd. (NMLS 129122). Texas Loan Officer NMLS 220172. FHALoanDallas.com is not affiliated with any government agencies, including the Federal Housing Administration (FHA) or the U.S. Department of Housing and Urban Development (HUD). AmCap Mortgage, Ltd is an FHA Approved Lender.
