FHA Loans

Are your fico scores less than 680? FHA BEATS CONVENTIONAL RATES EVEN WITH THE MORTGAGE INSURANCE INVOLVED.

FHA loans are underestimated as an attractive option for loans because the mortgage insurance is expensive and redundant (monthly premium and one time up front fee). But the flexibility FHA loans offer is very attractive for those with low fico scores (below 660) and less than 25% down payments.  In these cases, FHA loans are much more attractive in total rate and mortgage insurance than conventional loans. Traditionally, loan agents have wrongly steered clients with low fico scores away form FHA loans to avoid mortgage insurance which is required on all FHA regardless of down payment. This a big mistake because the mortgage insurance and the rate will still be a lot less than the rate on a conventional loan.

FHA loans are the best, and many times, the only way to go with Fico scores below 640 and with less than 5% down.