Did you know that an FHA loan is not just for first time home buyers? It is a myth that FHA home loans are only for the first time home buyer. Today, we are going to take a look at what our friends over at Home Loan Ninja have to say about FHA loans.
FHA loans can be used to refinance a home, and may be a good choice because of the leniency regarding credit scores. Whether purchasing or refinancing there are reasons people choose an FHA home loan.
An FHA home loan currently allows for a borrower to have a 580 FICO score, however this can change and sometimes one bank will have a different requirement. This is set bank by bank, some will banks during changes will require a different score than another. Now that does not mean you should shop on and on for a lender that will allow a lower credit score, what it does mean is that you should be working closely with your REALTOR® and your lender from the start. This way when changes happen you are prepared. FHA loans allow you to finance 95% of the property value. Many conventional loans will only finance 75% to 80% of the property value. Additionally many conventional loans are only available for those with a 720 FICO score.
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Looking for a mortgage professional? I would encourage you to contact;
Jason or James – your Home Loan Ninjas at 503.799.4112 or you can visit their website and see more info about mortgages and what you should expect.