4 Pros and Cons of an FHA Mortgage
Posted by David Marden on Monday, January 30, 2023 at 4:29:49 PM
By David Marden / January 30, 2023
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4 Pros and Cons of an FHA Mortgage
Pros of FHA mortgage:
- Low down payment: An FHA loan requires as little as 3.5% down, making homeownership accessible for many first-time buyers.
- More lenient credit requirements: FHA loans often have lower credit score requirements compared to conventional loans.
- Higher debt-to-income ratio allowed: FHA allows higher debt-to-income ratios, making it easier for some borrowers to qualify for a loan.
- Available for all property types: FHA loans can be used to finance single-family homes, multi-family properties, and manufactured homes.
Cons of FHA mortgage:
- Mortgage insurance: FHA loans require mortgage insurance, which adds to the monthly payment and can increase the overall cost of the loan.
- Limited loan amount: FHA loan limits may be lower in certain areas, limiting the amount a borrower can finance.
- Appraisal process: The FHA appraisal process is more stringent than that of conventional loans and may lead to lower property values.
- Upfront mortgage insurance premium: Borrowers are required to pay an upfront mortgage insurance premium, which can add to the closing costs of the loan.
$165,000
6
Beds
2
Baths
3,750
Sq.Ft.
1
Day on Site
11740756
MLS
The price reflects that some updating is needed throughout the house. Hardwood floors on the first floor. New kitchen cabinets. The house is vacant and being sold as is. THE PRICE IS NEGOTIABLE!
MLS #: 11740756
2
Beds
1
Baths
1,037
Sq.Ft.
1
Day on Site
11740758
MLS
Spacious 2 BR townhome in Kenwood. Living and dining on first floor, 2BR and bathroom on second floor. Great investment for landlord or a good starter home. Sold as is. No survey provided.
MLS #: 11740758
$380,000
3
Beds
3
Baths
1,400
Sq.Ft.
1
Day on Site
11740761
MLS
MOTIVATED SELLER!! BRING ALL OFFERS BEAUTIFUL BUNGALOW SITTING ON LARGE CORNER LOT OFFERS 5 BEDROOMS, ONE OF WHICH IS A MASTER SUITE ON THE UPPER FLOOR, 3 BATHROOMS, KITCHEN HAS WALNUT CABINETS,...
MLS #: 11740761
2
Beds
2
Baths
1,600
Sq.Ft.
1
Day on Site
11740767
MLS
Welcome to your dream home in the heart of West Town! This rarely available corner penthouse unit is situated in an incredible location, offering the best of urban living with easy access to...
MLS #: 11740767
$474,500
3
Beds
2
Baths
1
Day on Site
11740768
MLS
INCREDIBLE OPEN/BRIGHT ARCHITECTURALLY SIGNIFICANT NEW CONSTRUCTION 3BD/2BA PLUS FAMILY/REC ROOM SINGLE FAMILY HOME JUST WEST OF THE WEST LOOP IN EAST GARFIELD PARK. CRISP CLEAN LINES, POLISHED...
MLS #: 11740768
$474,500
3
Beds
2
Baths
1
Day on Site
11740771
MLS
MATTERPORT/3D VIRTUAL TOUR LINK AVAILABLE!!! INCREDIBLE OPEN/BRIGHT ARCHITECTURALLY SIGNIFICANT NEW CONSTRUCTION 3BD/2BA PLUS FAMILY/REC ROOM SINGLE FAMILY HOME JUST WEST OF THE WEST LOOP IN EAST...
MLS #: 11740771Open 3/25
$725,000
3
Beds
2F11/2
Baths
2,396
Sq.Ft.
1
Day on Site
11735633
MLS
Extra-Wide Ukrainian Village Duplex Condo on 30' x 123' lot featuring 22' Wide Interiors- This unit is a uniquely designed 3 bedroom/2.1 bath duplex with optimal open living space with Floor to...
MLS #: 11735633
1
Beds
1
Baths
800
Sq.Ft.
1
Day on Site
11740774
MLS
This gorgeous 1 bedroom, 1 bathroom Streeterville condo is located in an architecturally significant building by Mies Van Der Rohe CO-OP, one of the world's most respected architects. This...
MLS #: 11740774
1
Beds
1
Baths
754
Sq.Ft.
1
Day on Site
11740777
MLS
Don't miss out on this 1 Bedroom, 1 Bath Concrete Condo located on the 38th floor. Hardwood floors, Stainless Steel Appliances, Open Concept floor plan. Washer & Dryer located in this unit. This...
MLS #: 11740777Under Contract
$474,900
3
Beds
3
Baths
2,036
Sq.Ft.
1
Day on Site
11707179
MLS
SPACIOUS 2 STORY HOME WITH 3 BEDS AND 3 FULL BATHS. SITUATED ON A 40 BY 112 LOT ON QUIET STREET AND LOCATED IN THE EDISON PARK ELEMENTARY SCHOOL DISTRICT AND TAFT HIGH SCHOOL. First FLOOR wide open...
MLS #: 11707179
$155,000
2
Beds
1F11/2
Baths
1,250
Sq.Ft.
1
Day on Site
11740791
MLS
Great Location in Chicago's Jeffrey Manor (Hyde Park Township)! This home features 4 Large Bedrooms with 1 & 1/2 Bathrooms. updates include MODERN KITCHEN, ENGINEERED HARDWOOD FLOORS, NEWER...
MLS #: 11740791
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