With home prices continuing to soar past affordable levels, more buyers are ditching conventional mortgages in favor of alternative low-down payment options like FHA loans. According to data from the U.S. Department of Housing and Urban Development, the volume of homebuyers reaping the benefits of an FHA loan is growing.
FHA loans offer buyers the perks of less-rigorous lending standard and down payment requirements as low as 3.5 percent. Insured by the Federal Housing Administration, even those with less than perfect credit can qualify.
For those looking to buy a home but concerned about the upfront cash required, an FHA loan may be an ideal way to make the dream of homeownership a reality.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.5 percent, 15-year rates are near 4.0 percent and the 5-year ARM is averaging 4.0 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.