Individuals or families who may not qualify for a conventional loan due to low credit scores, limited down payment ability or other factors may find that an FHA loan is a very viable option. The Federal Housing Administration insures these loans and, as such, lenders often provide top 30 year fixed FHA mortgage rates for a much wider group of potential home buyers.
To get the best 30 year fixed FHA mortgage rates, there are some strategies potential home buyers can employ. It is possible to make substantial changes to your credit score or financial situation that can help ensure top rates and low monthly payments over the term of the loan.
Credit Scores and Down Payments
Most conventional loans will require a 620 credit score or higher to get the best interest rates, but the FHA loans can be granted with a score of 508 or more for a down payment of 3.5% of the value of the home. Traditional loans will require a minimum of 10% and in some cases as much as 20% to get the best rates.
It is also possible for those with lower credit scores of 570 down to 500 to obtain an FHA loan. These individuals will need a 10% down payment and will have a slightly higher rate. Increasing the down payment or boosting the credit score is important before applying.
In order to get the best 30 year fixed FHA mortgage rates, shop around for different lenders. All lenders offering FHA loans have to be approved, but they may offer a wide range of costs and rates.
Be sure to compare online mortgage lenders to traditional mortgage companies in your area. Online companies tend to offer better overall rates, which can have a big impact on the cost of the loan over the 30 years.
To find out more about the current 30 year fixed FHA mortgage rates offered by Guaranteed Rate, drop by our website. We are easy to find online or give us a call if you have questions.