FHA loans are not only for first-time homebuyers. As long as you do not have more than one FHA insured loan at a time, you can apply for an FHA loan.
While you will have to pay mortgage insurance on a FHA loan, you will typically have a much lower interest rate than if you took out loan for 100% financing using conventional financing. Plus if you sell your home within the first five years of the loan you will receive a partial refund of the up front mortgage insurance you paid at the start of the mortgage.
People who have reasonable credit with no regard to credit scores, or income limits, will qualify for a FHA loan.
FHA now allows up to 95% cash out on a refinance, which makes it a good choice for debt consolidation.
Downpayment Assistance Programs (DAPs) can be used in conjunction with FHA mortgages to allow the homebuyer to put no money down
FHA loans are great for manufactured homes. With loan amounts of up to 97% and the cost savings of a manufactures home compared to a convention built home, you may qualify for a home loan with payments about the same as your current rent. This is a great program for first time home owners.
FHA loans are a good choice if you are looking to purchase a new home, because they only require a 3% down payment. The down payment can be in the form of a gift or a grant, and there are down payment assistance programs that would love for you to use their money. Ask you mortgage professional if they work with any down payment assistance programs that can help you.
FHA maximum loan amounts vary by county. The FHA single family loan limits range from $200,160 to $362,790. Check with your mortgage professional to see what the loan limits are for your area.
If you are a borrower being quoted a sub prime loan ask you mortgage broker about FHA. Many borrowers who can only qualify for a sub prime loans may still qualify for FHA. Not all mortgage brokers are able to offer FHA mortgage programs.