What are the pros and cons to a FHA home mortgage loan?
I have terrible credit but have been pre-approved for FHA at 6% interest fixed for 30 years.
I'm wondering if this is the way to go or if there are better ways to buy a home.
I'm a single mom, live in Iowa,have very little for down payment, good rent and work history, and signs that I've been working to improve my credit rating.
- aCeRBicLv 41 decade agoFavorite Answer
There are really very few options at this point in financing a home. Most lenders that thrived during the real esate boom of this decade have gone bankrupt, most of the remaining lenders that have survived are so severely weakened they have limited mortgages to those that have near perfect credit and at least 10% down. If I had that FHA loan: 6% fixed with small down, I'd run with it. You'll probably need to pay a PMI.
- ibu guruLv 71 decade ago
If you got approved for an FHA loan for 30 years fixed at 6%, you've got about the best deal anyone can hope for! Grab it!
The Fed funds and discounts rates may be down, but mortgage rates are increasing, fixed rates are becoming more rare because interest and inflation rates are increasing. And people with anything less than the best credit are being denied. Credit is very tight and the economy is tough right now.
Next time, do your homework FIRST, then apply for loan, credit card, mortgage, etc. You lucked out this time, but if you don't do your homework first, you could get yourself into a terrible mess.
- 1 decade ago
We're going with an FHA loan, and we're really happy with it. I feel like they're protecting us by not letting us get into more than we can handle. (I understand it's really to protect them, but I think it really works out best for everyone involved in our case.)
After we got our pre-approval, a relative suggested we shop around for a better loan. I called 3 mortgage brokers. All 3 told me we were getting the best deal with our current FHA. Woo Hoo!
- 3 years ago
sure you will would desire to call for to be on the deed. I stay in Ohio. this is a community assets state meaning it does now no longer subject count while you're on the deed or now no longer. You very own 0.5 of of the bargain. you will would desire to in no way enable a guy safeguard you down like this. you additionally can no longer paintings and generate income yet that would not propose you haven't any longer have been given any say or any money. His maxing out the fairness would reason you problems and you will desire to now no longer basically enable that ensue. you would be able to desire to insist that your call be in this deed. you would be able to desire to get some credit located so as which you're able to have the means to attend to your self for people who've have been given to. when you divorce basically isn't the time to do it. i could additionally get a financial enterprise card that can assist you build your credit.
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- 1 decade ago
If your scores are really terrible that is an incredible rate.