Whether you are a first-time homebuyer or a homeowner preparing to refinance or sell your house and buy a new one, it is well worth your time to find out whether or not you can benefit from an FHA home loan.
- An FHA home loan typically has less strict requirements regarding debt-to-income ratios compared to a conventional mortgage.
- An FHA home loan does require a monthly mortgage insurance premium (MIP) as part of your monthly mortgage payment.
- FHA MIP is often lower than the equivalent private mortgage insurance (PMI) premium that you might have to pay on a conventional home loan with a low down payment.
- Because the cost of living is not the same throughout the country, FHA home loan limits vary from one county to the next.