If you want to buy a home, you will probably need to take out a mortgage. Most people do not have enough cash to buy a house outright. FHA loans are a popular choice for those who are eligible, but you should educate yourself before making any major financial decision. You should know as much as possible before taking out an FHA loan in Lewisville, TX. The Federal Housing Association assures FHA loans, which is why they have more positives than negatives. Aspire Mortgage Group can help you get started with an FHA loan.

What Are the Pros Of Getting an FHA Loan?

FHA loans have a great reputation for being flexible and forgiving, so they work well for many families. Here are some of the advantages of getting an FHA loan:

Again, not everyone has a lot of cash to put into a new home. One advantage of FHA loans is that you don't have to put down a large down payment. With a traditional loan, the down payment is normally required to be at least 20% of the value of the house. With an FHA loan, you may only need to pay a 3.5% down payment. If you are eligible, you may even be able to apply for a down payment assistance program.

Terms are also much more flexible regarding credit history. Is this your first time buying a home? Do you have a lower credit score because of some items in the past? You are more likely to qualify for a FHA loan than a traditional loan if your credit isn't as good.

Interest rates are determined by the market, and FHA loans often have competitive rates when compared to many other loans.

One important factor when looking at your credit is your debt-to-income ratio. This is an important factor because lenders want to make sure you will have enough money in your budget to pay them, too. FHA lenders are more flexible if your debt-to-income ratio is not as good.

What Are the Disadvantages of FHA Loans?

Even with all those advantages, there are also some disadvantages. FHA loans require you to pay both upfront and annual mortgage insurance premiums. These added fees are added to the total cost of your loan and are part of your regular mortgage payment. If you make a down payment of 10%, though, the monthly cost of mortgage insurance will fall off after 11 years.

There are limits on how much you can borrow with an FHA loan. If the property you want costs more, you will not be able to use an FHA loan. Additionally, sometimes, the rate you get is not as competitive as if you had gotten a traditional loan.

FHA loans also have stricter approval and appraisal requirements. You could look at this, though, as FHA loans protect you by making sure your property meets standards.

Is an FHA Loan Right for You?

An FHA loan is not the best choice for everyone, but it could be the best for you and your family. You have choices when it comes to mortgage services in Lewisville, TX. Please feel free to call Jacob Lewis at Aspire Mortgage Group to learn about your options so you can get the process started to buy your new home.

Contact Information:

Aspire Mortgage Group (Jacob Lewis)

405 State Hwy 121 Building A Suite A250,
Lewisville, TX 75067
United States

Contact Aspire Mortgage Group (Jacob Lewis)
(972) 645-8202
https://www.aspiremtg.com/