What are the catches to an FHA loan?

What are the catches to an FHA loan?

Moline, IL · Member since 2014 · 11 posts · 1 vote

I know people personally that have left out the research part before signing a contract and they ended up in a financial bind on a monthly basis. I was wondering, what are the things they don't tell you, if anything, about an FHA loan. Specifically their fixed rate loan.

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  • Rental Property Investor · Brookline, MA · Member since 2013 · 1k+ posts · 777 votes
    12y

    The PMI is rather unfriendly nowadays:

    http://www.fha.com/fha_requirements_mortgage_insurance

    Otherwise it is a solid investment vehicle. There aren't any more, or less, surprises with an FHA loan than any sort of conventional one. The originator will tell you exactly how much you'll have to pay each month BEFORE you sign anything.

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