Why is FHA financing more expensive?
FHA financing has guide lines that allow the borrower to do things that conventional financing does not.
For example with FHA the borrower can use gift money from family member i.e. Parent's & Grandparents can gift part or all of the down payment which is not always the case with conventional financing where the borrower needs to show the history or flow of funds in an account of some sort. Bank, stock or 401K.
Considering buying a fixer-upper? Ask about getting an FHA 203K loan!
Before you start the home buying process it's "ALWAYS" best to speak with a knowledgeable lender that will help guide you to the best possible financing that fit's your personal needs and goals for buying a property. One size does not fit all!