Your Guide To FHA Loan Benefits
FHA loans allow buyers with lower credit scores to buy the home of their dreams even with credit scores of 580 and only put down 3.5%. Curious about the other benefits of getting an FHA loan? Read on to find out.
Low down payment. There are a few loan programs that offer low-down-payment options. FHA loans allow as low as 3.5% down payment.
Higher DTI. FHA loans allow higher debt to income ratios compared to other loan programs. You can get a loan even with a 50% DTI subject to added factors like higher down payment, a higher credit score, or proof of significant savings.
Lower credit scores. You don’t have to wait a year to improve your credit score and apply for a loan. FHA loans allow loans even with a 580 score if you put a 3.5% down payment. For scores between 500 to 579, you need to put down at least 10%.