- Purchase mortgage with less than 20% down payment
- If your credit is less than perfect or under 740
- If you need a co-signer
- Refinance of a current FHA loan
- Purchase or refinance of a 3 or 4 unit property
- Lower rate of mortgage insurance than conventional
FHA can offer better rates for these and other loans because the lender does not absorb the risk. Therefore, they do not have to pass that risk along to you. In fact, Fannie Mae, the backer of most conventional loans, has recently announced new rate adjustments for borrowers with credit scores below 740. FHA does not have these adjustments.
If you fall into any of the above categories, or have less than stellar credit, you should see what an FHA loan could do for you.