FHA Guidelines

FHA guidelines have been much more aggressive over the years than conventional home loans. FHA home loans allow borrowers with bad credit to refinance or buy a new home. FHA guidelines mandate that no pre-payment penalties are ever allowed, so FHA borrowers can refinance their mortgage or sell their home at any time without fear of being charged penalties like subprime home loans. FHA mortgage rates are low and FHA guidelines enable 1st time homebuyers to buy a home with only 3.5 to put down as a deposit. FHA guidelines also enable cash out refinancing, so borrowers can consolidate debt or finance home repairs.