Is an FHA Loan Right for You? #fha #loan #bestoption #popularloan #3andahalfpercentdownpayment #attr

An FHA loan may not be the best option for you. I have clients coming to me regularly asking me what type of a loan product works best for me. And oftentimes they are discussing FHA loans with me because it's the most popular loan type. Now, the three and a half percent down payment is very attractive. However, they don't realize there's a substantial mortgage insurance premium amount, could be in the thousands, added to the loan balance as part of every loan. In addition to that, you have to carry mortgage insurance for the entire length of the loan. You require to refinance that loan to get rid of that mortgage insurance. So there are other options in terms of conventional. There are 3%, there are 5%, there are 10% conventional loan options that will allow you to, the mortgage insurance just to fall off instead of being stuck with the loan for the entire program, which will save you guys money long term.

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