Benefits of FHA mortgages for first time home buyer in Carrollton, Texas
FHA has a particular program meant to assist first time home buyer in Carrollton own homes. It does this by making it easier for one to qualify provided they do not have an existing FHA mortgage. Compared to conventional mortgages, FHA has attractive terms which make it a good option for Carrollton first time home buyers. This article discusses the benefits of FHA loans for first time home buyer in Carrollton.
FHA understands the plight of first time home buyers. Many may not be having excellent credit ratings, and therefore, they may not be able to qualify for conventional loans. FHA is lenient on credit scores, and this makes a majority of borrowers to qualify. Borrowers who had been bankrupt can obtain FHA loans after two years. The imperfections, such as previous late [payment, are also overlooked when FHA loans are issued. Those who can raise 3.5% as down payment need to have a credit score of at least 580.
Low down payment
Down payments make it hard for most of the borrowers to own homes. The benefit of FHA is its low down payment and closing cost. The good thing about FHA down payment is that the borrowers can use gifts and grants to settle it. This relieves the burden of having to save for a long time before purchasing a home.
Attractive interest rates
The interest rates on first time home buyer loans in Carrollton are very competitive. This reduces the monthly payments that should be made by the home buyer. The mortgage cost at the end of the loan term is also significantly reduced.
Easy application process
The application process for FHA mortgages is quite easy. The home buyer only needs to have the required credit score, down payment, and evidence of steady employment. Compared to conventional loans FHA mortgages are less challenging to the home buyers.
High debt-to-income ratio
The borrowers with high debt-to-income ratio can apply for FHA first time home buyers in Carrollton. Those with existing loans can still qualify to apply for FHA mortgages. The borrower should have a ratio of 43% to be approved for the mortgage programs. The borrowers only have to show the ability to make monthly repayments and still meet their family expenses.
The FHA loans for first time home buyer in Carrollton has helped many purchase houses. The lenient credit score, small down payment, attractive interest rates, easy application process, and high debt-to-income ratio, are some of the benefits of FHA first time home buyer homes in Carrollton. The first time home buyers should always check for other options before making a choice. The mortgage brokers are valuable during the home buying process so borrowers should consider getting one.
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