FHA Loans
FHA loans have a lower down payment requirement than conventional loans, but higher than VA loans. FHA has a more liberal qualifying formula than on conventional loans but not as liberal as VA loans. FHA loans made before December 15,1989 are fully assumable and can be creatively financed. Loans made after December 15, 1989 can be assumed at the same interest rate with qualification. FHA has two loans -- fixed rate and a 1-year ARM loan!
Disadvantages: $271,000.00 county loan limits may be inadequate in high cost areas. Appraisals may contain more repair requirements than conventional loans.
- lower down payment
- more liberal qualifying formula
- fixed rate
- 1-year ARM loan
