There are tons of myths about FHA home loans and because of this, many people misunderstand this loan program. However, knowing some of the basics behind this loan program can help you understand it better. These facts can help you understand what an FHA loan has to offer you compared to a conventional loan.
Fact: FHA loans are NOT only for first-time home buyers.
FHA loans don't provide any advantages or disadvantages to any applicant depending on whether they're a first-time borrower or a veteran borrower. All qualified borrowers are eligible for the same kinds of FHA loan programs. Interest rates and other terms may vary on a case by case basis but this is determined by your financial qualifications.
Fact: FHA loans have no income limit.
Many assume that FHA loans are for borrowers who are at a financial disadvantage, but it's not true. Although it IS true, that FHA loans have more competitive interest rates, and generally lower required down payments, there's no income limit with these kinds of loans. If you qualify, you may be approved for an FHA mortgage.
Fact: you can refinance a conventional mortgage into an FHA loan.
Borrowers are able to use FHA home loans to refinance out of a conventional loan and into an FHA mortgage. Additionally, they can use FHA refinance loans to refinance out of adjustable rate loans and into fixed rate mortgages. This is a huge advantage when a homeowner wants to get into a more predictable house payment.
Don't wait another minute. Go ahead and contact a loan professional to learn more about these facts and what your options might be under the FHA home loan program. You never know unless you try! You may be pleasantly surprised at what’s available to you!