Jul 10
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FHA financing has become very popular over the last few years, as it allows buyers to put as little as 3.5% of the purchase price as a downpayment. But many people don’t consider FHA financing because they think there are income limitations, or that they are only for first time buyers. That’s why I would like to offer you this list of 7 things you should know about FHA loans.
As far as I am concerned, the important one is the last one: FHA loans are assumable! That means that when the property is sold, the new buyer — assuming they are qualified — can simply agree to take over the existing mortgage, with the same payments and interest rates. Most conventional loans can’t be assumed. This is a great advantage in the current market. And with interest rates at record low levels, it is worth considering an FHA loan now to lock in that rate for 30 years. It could make your property more desirable years from now when it is time to sell.
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