FHA is now on the rise with more families looking into buying a home. With the housing market holding at low prices and a homebuyer tax credit, it is incentive for families to want to jump into the homeownership pool. There are some differences between FHA and other conventional programs with lenders.
FHA purchases are the most common FHA loans, and their credit restrictions are a little less stringent. What does this mean to you? In reality, it means that while FHA is not a license to go out and ruin your credit rating, it does overlook some collections and past derogatory credit. However, it does look very closely at your rent history over the past 12 to 18 months, as well as your installment debt, such as your car loan. Conventional loans are very stringent, considering your history on all credit over the past two years.
The other main difference is that FHA only requires that you have at least 3.5% down, while many conventional loans require 20% down. These are the two main differences between FHA and conventional loans. Look to the experts in FHA loans, by visiting, www.fhaloansnow.net.
-Mayer Dallal
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