FHA loan is a good first time buyer program. It is the preferred choice for the majority of home buyers. The FHA loan is specifically designed for first time home buyers because it offers a much lower down payment requirement, easier terms and overall qualifications. This simplifies the first home buying process.
What are the benefits of FHA? FHA has many benefits such as low down payment, lower reserve requirements, lower credit scores, better income to debt ratios, larger allowance for closing costs and more. Lets look at each FHA benefit a little closer starting with down payment.