* APR - Annual Percentage Rate: An annual percentage rate is a broader measure of the cost of borrowing money than the interest rate.
The main benefits of an FHA loan include term options of 15 or 30 years, a down payment as low as 3.5% and eligibility for those with a slightly lower credit score. It is also important to consider that FHA loans require mortgage insurance for the life of the loan, and do not include an adjustable-rate option. Department of Housing and Urban Development. These guidelines are set by the Federal Housing Administration (FHA), which is part of the U.S. To take advantage of this program, borrowers need a slightly higher credit score and lower debt-to-income ratio compared to what is needed for an FHA loan.įHA loans can also be great for first-time homebuyers or anyone looking to take advantage of easier qualification guidelines.
This lets Ent offer a program with a 30-year term, fixed- or adjustable-rate options, discounted mortgage insurance rates and, maybe best of all, a lower down payment of only 3%.
For first-time homebuyer loans, banks and credit unions can set their own guidelines and loan qualification criteria.
