🚫 The Downsides of an FHA Loan (Real Talk)
FHA loans are awesome for first-time buyers because they let you buy with as little as 3.5% down — but there are a few catches you should know before you sign:
🔑 Mortgage Insurance You Can’t Escape (Easily)
You’ll pay mortgage insurance (MIP) every month, and unlike conventional loans, it doesn’t automatically fall off when you hit 20% equity. (You may have to refinance later to get rid of it.)
💲 Lower Loan Limits
FHA caps how much house you can buy — so if you’re dreaming of a higher-priced home, it may not qualify.
📋 Stricter Property Standards
The home has to meet FHA safety and livability guidelines. Great for buyers (less risk!) but it can knock out a fixer-upper or older house you wanted.
💸 Slightly Higher Upfront Costs
There’s a 1.75% upfront mortgage insurance premium, usually rolled into your loan — so you’re technically borrowing a little more.
💬 Our Take
FHA loans are a fantastic tool to get you in the door, but you should know the trade-offs before committing.
At Trealtorr, we’ll run your numbers for both FHA and conventional side by side — so you see which one saves you more long-term.
📲 Call or text us today at +1 (347) 831-6085 — let’s compare your options and get you into the right loan, not just any loan.