5 Common Myths About FHA Loans – Debunked!

FHA loans are a popular option for many homebuyers, but there are still plenty of misconceptions floating around. If you’re considering an FHA loan or just curious, here are five common myths you should know about – and the truth behind them!

Myth 1: You Need Perfect Credit to Qualify for an FHA Loan

Reality: While a high credit score can help, you don’t need perfect credit to qualify for an FHA loan. In fact, you can often qualify with a credit score as low as 580, and sometimes even lower if you make a larger down payment.

Myth 2: FHA Loans Are Only for First-Time Homebuyers

Reality: Not true! FHA loans are available to both first-time and repeat homebuyers. As long as you meet the credit and income requirements, you can qualify for an FHA loan, whether it’s your first or fifth home.

Myth 3: FHA Loans Have High Mortgage Rates

Reality: FHA loans typically offer lower mortgage rates than conventional loans, especially for buyers with lower credit scores. The rates are competitive and can save you money over time.

Myth 4: FHA Loans Are Only for Smaller, Less Expensive Homes

Reality: While FHA loans are popular among buyers looking for affordable homes, they can also be used for larger homes – as long as the home fits within the FHA’s loan limits for your area.

Myth 5: You Can’t Refinance an FHA Loan

Reality: You absolutely can refinance an FHA loan! There are several options, including the FHA Streamline Refinance, which makes it easier to refinance without needing a full credit check or appraisal.

Thinking an FHA loan might be right for you?

Whether you’re buying or selling, I’m here to guide you every step of the way. Call me, Pauline Howerton, Realtor®/Broker with Century 21 in Eastern North Carolina, at 267.614.4952 and let’s turn your real estate goals into reality!