However, there is some problems that go along with this kind of mortgage Benefits and drawbacks out-of FHA Money Part of the attractiveness of FHA loans is because they make lenders alot more happy to give mortgages so you can lowest- and you may center-money borrowers by the FHA’s guarantee to cover money. Gurus Told me Faster downpayment: FHA money allows you to purchase a home having a down percentage out of only step three.5%. Antique loan applications may require a more impressive advance payment, otherwise they may want highest credit scores and you may revenues to obtain accepted that have a tiny downpayment. Explore current money to have a downpayment: Its better to fool around with skilled money for your down-payment and closing costs with FHA financing. And you may a motivated supplier pays around six% of the loan amount with the a consumer’s settlement costs. More substantial downpayment offers so much more borrowing from the bank options, and you might save money on attention costs along the life of your loan.