FHA Pros, LLC, a national FHA condo approval service, has developed a list of facts speaking to the top misconceptions associated with FHA loans.

“We have seen home buyer interest in FHA loans go from practially zero three years ago to upwards of 87% today….Despite this rapid rise in popularity, many buyers still do not fully understand the benefits of these loans.”

1.FHA Loans Are Not Only For Lower-Income Borrowers. FHA loans are available to everyone. There is no maximum income restriction associated with FHA loans. Borrowers do need to substantiate income and assets by submitting proper documentation

2.FHA Loans Are Not Only For First-Time Buyers. Whether borrowers are making their first home purchase or their fifth, they can look to an FHA loan as a financing option.

3.FHA Loans Are Not Just Small Loans.Loan amounts can be as high as almost $800,000. The government recently raised the maximum loan amount from its original cap or $362,790 to $793,750.

4.FHA Loans Are Not Affiliated With The Section 8 Housing Program. While both programs are administered by HUD, FHA loans have nothing to do with low-income subsidized housing. FHA loans are simply mortgages insured by FHA.

5.FHA Loans Are Often More Affordable Than Conventional Loans. While FHA loans typically offer the same interest rates as other loans, borrowers benefit from a much lower down payment of as low as 3.5%.

6.FHA-Approved Condo Developments Are More Desirable To Buyers. With 87% of home buyers indicating that they plan to use FHA loans, condo associations that are not FHA approved are missing out on a significant pool of prospective buyers.

7.FHA Loans Are Assumable. In addition to lower down-payment and credit-qualifying requirements as sompared to conventional loans, FHA loans are assumable.

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