By Jason Gelios REALTOR®️
FHA mortgages allows you to use funds as a gift for 100% of your down payment. A friend, relative or company can gift you the money so that you can get this type of mortgage at zero down.
Here are some FHA pros:
Low down payment requirement of 3.5%
Lower interest rates
Gift funds can be used to cover down payment
Lower credit scores may be approved
A higher tolerance of high debt-to-income ratios
Mortgage is assumable
An easier mortgage to qualify for
Sellers can offer up to 6% of the closing costs
Purchase price can not exceed the loan limit
More paperwork involved
Mortgage insurance is more expensive
While there are pros and cons to this loan, you will find that there are more pros which makes this type of mortgage a viable option for homebuyers.
Jason Gelios is a Husband and Father. After that, a Top Producing REALTOR®, Author of the book Think like a REALTOR®, Creator of The AskJasonGelios Real Estate Show and an Expert Media Contributor.