FHA Mortgage Rate
There are some people that go after a home loan with such bad credit that they have no hope of getting a good interest rate without a lot of work on their credit score – if they have any hope of getting a home loan at all. Some people with better credit just assume that they can not get a home or a good rate, even though they may qualify. Those with troublesome histories in credit will often seek out information on an FHA mortgage rate for their home loan to save some money and get a loan when they may not otherwise qualify.
You can get so much more than a good FHA mortgage rate though the FHA home loan program. They can help you lower the amount of a down payment that you may need. Some home loans require you to have at least ten to twenty percent down. If you were looking at a 100,000 dollar home, that down payment would be anywhere between ten and twenty thousand. That doubles if you are looking at a home worth 200,000 dollars. With the FHA program, your down payment due by you can be as low as 3.5 percent of the asking price. The rest can be included in your loan.
You may get a loan or a better rate through the FHA if you are having trouble at your typical bank and financial institutions. They want you to have a certain credit score, which is much higher than it has been in years past. To qualify for the FHA mortgage rate, you should have no lower than 620 as your credit score. They can take things into consideration like a bad report that is full of things like medical bills, which are often unavoidable when someone gets sick, but hard to pay back if a family has bad health insurance, or no insurance at all. There will be many things that go into calculating your interest rate if you qualify for a home loan.
Even though you will get a better FHA mortgage rate than you will through any other lender if you qualify for the program, there are still things that you can do to make it even better. The interest rate is what makes your payments affordable, or through the roof. Take some time to pay off some items on your credit report if you can. If you have collection accounts, these hurt your credit and also your mortgage rate. If you can pay some of these, you can raise your score and lower your interest rate.
You won’t really know what your rate is going to be unless you call someone and find out. You can try to look online but each case is going to be different. When you want to know what your FHA mortgage rate might be if you choose to go in the route to secure a home loan, you’ll have to find the nearest FHA lender. They are not always in every community, which means you may have to travel once you have found one, or hope that you can get a preliminary quote on the phone. If you are struggling with your score, but believe you can qualify and afford a mortgage, call someone and find out your options. You won’t know until you try.