Pros and Cons of FHA Home Loans in Virginia
- As with other types of mortgages, you can get pre-approved for an FHA home loan.
- The most attractive benefit of the FHA loan is its low down payment requirement, and the ability to use a financial gift or inheritance.
- Younger, first-time, and lower-income buyers also appreciate the lower credit score and debt-to-income ratio requirements.
- The main downside of an FHA loan is the mortgage insurance requirement. FHA borrowers must pay an upfront mortgage insurance fee of 1.75 percent of the total loan amount, as well as a monthly premium regardless of down payment size.
- As with VA loans, houses purchased with an FHA loan must meet certain quality standards.
- FHA loan limits are lower than conforming loan limits, which may restrict your options.
What types of properties can you purchase with an FHA Home Loan?
You can only use an FHA loan for primary residences.
F&M Mortgage: A Virginia Tradition Since 1908
F&M Mortgage, a division of F&M Bank, has been investing in Shenandoah Valley communities, and helping Virginians become homeowners for more than a century. We are proud to be one of the area banks that offer FHA loans. Our Mortgage Advisors are committed to offering friendly, personalized service, with the kind of local expertise you only find in people who live and work in your community. Ready to apply for an FHA loan? Use our online mortgage application or apply in person at your nearest branch. If you’re not sure which mortgage loan is the best option for you, give us a call today!