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Apply For 30 Year Fixed FHA Quicken Loan

With FHA fixed house loan prices being at record lows, many people are ready to purchase a house or re-finance their current house loan. If you are one of the many Americans who want to take advantage of one of the best times in many generations to buy or re-finance, you are probably weighing the loan options that are available to you.

Apply For 30 Year Fixed FHA Quicken Loan

Apply For 30 Year Fixed FHA Quicken Loan

Apply For 30 Year Fixed FHA Quicken Loan

If you are a first-time real estate buyer or have not thought about your current house loan in years, it may be hard to tell which type of loan will be the best for your situation.

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Two of the most common loans right now are traditional, fixed-rate loans & the government-backed FHA Fixed loan. Each loan offers unique features that benefit different situations. Knowing some of the advantages and disadvantages of both loans will help make your decision easier:

Similarities between Conventional & FHA loans

* Both loans currently provide some of the lowest prices in history. 15-year traditional fixed-rate house loan prices are at an all-time record low. FHA prices are a little bit greater but in general, prices are aggressive and comparable.

* The most popular FHA & traditional loans are fixed-rate for 30 year. That means the interest levels won’t change for the life of your loan.

* However, both traditional & FHA provide ARMs (adjustable amount mortgages).

Advantages of an FHA Loan over a Conventional Loan

* Credit score qualifying criteria not as strict – Credit score ratings as low as 580 now be eligible for a an FHA fixed finance. Additionally, your allowable debt-to-income ratio is greater on an FHA. Meaning, if the amount of debt you carry is relatively high compared to your income you may still be eligible for a an fixed FHA Quicken loan.

* Low down transaction required – FHA 30 year fixed loans usually require as little as 3.5% down on the purchase of a house. Government specifications also feature some of the lowest amounts needed to close a loan, potentially leaving more money in your pocket at closing.

* Easy Refinancing – Refinance up to 97.75% of your home’s value. FHA also offers an FHA Improve which allows you re-finance with no appraisal and minimal credit specifications.

Benefits of a Conventional Loan vs an FHA Loan

* Most aggressive house loan prices – Due to the FHA approving loans for people with reduced credit, there is a greater risk associated with those types of loans, meaning the prices are usually a little bit greater. A favorable credit score specifications for traditional loans provide people reduced prices when compared to FHA loans.

* No MIP at closing – FHA 30 year fixed loans come with house loan expenses (MIP) that are built in over the course of the loan. When you close, there’s also a one-time advance house finance top quality due – currently 2.25% of the total finance. Conventional financial financing does not require this advance top quality.

* Flexible conditions – Conventional loans provide several loan term conditions. Different pay back conditions provide different, more aggressive house prices. The faster your term, the reduced your amount. Choose between 10-, 15-, 20-, 25- or 30-year pay back periods. FHA loans usually do not provide as many options.

If you have less than perfect credit and don’t have enough for the standard 5-20% down transaction, an FHA loan may be the better option for you. If your credit is good, a stable job and a sizable down transaction – you could save more money over the life of your finance by going with a traditional option.

Apply For 30 Year Fixed FHA Quicken Loan Approval

Amber Hunt is a writer with Quicken Loans who specializes in articles about FHA Improve Refinance and Mortgage Refinance, other home-buying related information.

* Apply For 30 Year Fixed FHA Quicken Loan