FHA loans allow buyers with lower credit scores to buy the home of their dreams even with credit scores of 580 and only put down 3.5%. Curious about the other benefits of getting an FHA loan? Read on to find out.
Low down payment. There are a few loan programs that offer low-down-payment options. FHA loans allow as low as 3.5% down payment.
Higher DTI. FHA loans allow higher debt to income ratios compared to other loan programs. You can get a loan even with a 50% DTI subject to added factors like higher down payment, a higher credit score, or proof of significant savings.
Lower credit scores. You don’t have to wait a year to improve your credit score and apply for a loan. FHA loans allow loans even with a 580 score if you put a 3.5% down payment. For scores between 500 to 579, you need to put down at least 10%.