Low down payment
So you’re able to be eligible for the lower down-payment regarding step 3.5%, you need to meet at least FICO score specified by your lender. Which get can vary away from bank to lender, however it is basically lower than the new get criteria off almost every other funds, along with antique. If you do not feel the minimum rating, you may still qualify for a keen FHA loan, your advance payment could possibly get boost to ten%.
Mortgage insurance premiums
Home loan insurance policy is requisite for the all FHA finance, irrespective of down-payment proportions. An enthusiastic FHA loan requires that you only pay 2 kinds of financial insurance premiums – an initial MIP (comparable to 1.75% of overall value of your loan) and a yearly MIP (energized month-to-month). Continue reading