Couple buying a house

The Pros and Cons of FHA Loans

[cs_content][cs_section parallax=”false” style=”margin: 0px;padding: 45px 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/2″ style=”padding: 0px;”][cs_text]FHA loans are loans guaranteed by the Federal Housing Administration. Though they are a little different than traditional loans, they are a great option for those who don’t have the traditional 10-20% down payment available. As this is sometimes difficult to come by for first time homeowners, newlyweds, or college graduates, an FHA loan is a great option because you don’t need a big down-payment. If you are wondering what else is good or bad about an FHA loan, or how to get a real estate advance, here’s some more information about this viable loan.[/cs_text][/cs_column][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/2″ style=”padding: 0px;”][x_image type=”none” src=”http://www.expresscashflow.com/wp-content/uploads/2016/06/Express-Cash-Flow_May_The-Pros-and-Cons-of-FHA-Loans_Image-1.jpg” alt=”” link=”false” href=”#” title=”” target=”” info=”none” info_place=”top” info_trigger=”hover” info_content=””][/cs_column][/cs_row][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][cs_text]PFHA loans are loans guaranteed by the Federal Housing Administration. Though they are a little different than traditional loans, they are a great option for those who don’t have the traditional 10-20% down payment available. As this is sometimes difficult to come by for first time homeowners, newlyweds, or college graduates, an FHA loan is a great option because you don’t need a big down-payment. If you are wondering what else is good or bad about an FHA loan, or how to get a real estate advance, here’s some more information about this viable loan.[/cs_text][/cs_column][/cs_row][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/2″ style=”padding: 0px;”][cs_text]Cons of FHA

So, what’s the problem with these loans? First off, the property you want to buy has to be appraised and meet certain conditions. You also have to have a couple types of insurance on your home, including the upfront mortgage insurance premium, and the annual mortgage insurance premium, both of which will add to your payment over time.[/cs_text][/cs_column][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/2″ style=”padding: 0px;”][x_image type=”none” src=”http://www.expresscashflow.com/wp-content/uploads/2016/06/Express-Cash-Flow_May_The-Pros-and-Cons-of-FHA-Loans_Image-2.jpg” alt=”” link=”false” href=”#” title=”” target=”” info=”none” info_place=”top” info_trigger=”hover” info_content=””][/cs_column][/cs_row][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][cs_text]The upfront mortgage insurance premium is typically 1.75% of the mortgage, and the other is paid monthly and varies. You’ll have to pay these insurance premiums until you pay off your entire home. The second con of the FHA loan is that you’ll end up paying a lot more in interest over the period of the loan because you didn’t put down a larger down-payment. If you can afford a larger down-payment, that’s the better option for you.
Overall, FHA loans are a great option for families that can’t afford a huge down payment, but aren’t a great option if you can. They are, however, a great and easy solution for new homeowners and people who have a bad credit history.[/cs_text][/cs_column][/cs_row][/cs_section][/cs_content]