While there are plenty of FHA lenders in NC, there are just as many misconceptions about the good and the bad of FHA loans, and sadly, many of the lenders do little or nothing to clear up the misconceptions that exist. AmeriSouth is an FHA lender in NC, and we’d like to clear the air regarding the misconceptions surrounding FHA loans.
- First, FHA lenders in NC give loans not only to first-time homebuyers as many believe, but we also give loans to homeowners with multiple homes.
- There are no income limits with an FHA loan despite the many misconceptions. A lot of people will never apply with an FHA lender simply because they assume they don’t qualify.
- Regardless of how much you put down, the FHA has mortgage insurance, and you need to need to understand this. Case in point:
When lenders are competing for a rate, and a lender comes in very low, they’re pitching FHA; even it doesn’t make any sense for the borrower. Sometimes, we’ll get clients who will tell us that Lender A is offering them X, Y, and Z on a refinance, but the client doesn’t know it’s FHA. The client may have 50% equity in his or her , and the lender will try to put them in a loan that has mortgage insurance. Crazy!
At AmeriSouth, we are FHA lenders in NC offer several types of loans for homebuyers and homeowners who wish to repair or renovate their homes. Our goal with every client is to find the loan product that solves their problem and works best for their situation.
What’s Good About an FHA Loan?
One of the reasons FHA lenders in NC like to offer FHA is that the mortgage insurance annual premium is very affordable with FHA loans, especially for people who don’t have great credit. FHA is usually not the best choice for someone with perfect credit because you’ll be able to get less-expensive mortgage insurance with a conventional mortgage. However, for people whose credit scores aren’t great; FHA can save them a ton of money each month!
Another area where FHA loans are better than conventional loans is when it comes to interest rates. Indeed, interest rates for FHA loans are usually much lower than conventional loans. When people learn of this, they often reason, “Wow. Lower rates and lower annual premiums; what’s bad about FHA?” A lot of lenders will gloss over the downside of FHA, but not AmeriSouth.
The Bad Side of FHA Loans that Most NC Lenders Will Never Tell You
For the privilege of doing an FHA loan, you will have an additional 1.75% tacked onto your loan balance, even if you have an 800 credit score. Again, we would find an alternative to FHA for clients with picture-perfect credit because the 1.75% is not going to make sense for them.
Another thing that’s unfavorable about FHA is that mortgage insurance is for the life of the loan for people who utilize the lower down payment options.
Call Us to Learn More
If you’d like to learn more about FHA loan, contact the most trusted FHA lenders in NC. AmeriSouth will go over all of your options with you and discuss the pros and cons of each in great detail.