While an FHA loan may be a lifesaver if you wish to obtain a home and have now limited cash on hand or even a not-so-great credit history, these loans do involve some drawbacks you should know of before you apply.
- Really strict appraisal requirements. The U.S. Department of Housing and Urban developing (HUD) has property that is stringent criteria that exclude numerous properties from FHA loan eligibility. The house has also to end up being your main or major residence, as an investment property (though FHA loans can be used for some multi-unit properties up to four units) so you can’t use it. Continue reading Exactly what are the drawbacks of a FHA Loan?