Arvin Sahakian, Real Estate Pro in Glendale, CA
The following are some of the Disadvantages of FHA Loans:
Every FHA loan requires an upfront mortgage insurance payment equal to 1.75% of the loan amount. This can be rolled into the loan if you choose to avoid the out of pocket expense. In addition, you will have to pay for an annual mortgage insurance premium on a monthly basis.
The FHA annual mortgage insurance premium on loans with terms of 15 years or more will range from 0.80% to 1.05% of the loan amount (depending on the loan to value
ratio). For loan terms of 15 years or less, the FHA annual mortgage insurance premium can range from 0.45% to 0.95% of the loan amount (depending on the loan to value ratio).
Limited Loan Amounts
The maximum mortgage amount financed with FHA will depend on the State and County the home is located. Visit the U.S. Department of Housing and Urban Development (HUD) website to search for FHA mortgage limits in your area.
Limited Occupancy Types
FHA Loans are only available for owner occupied properties used as your primary residence. This means you cannot attain an FHA loan for a second property, investment property or vacation property.
I've written an article called "What is a FHA Loan?" that I believe you will find very useful for your questions and concerns. https://www.besmartee.com/blog/what-is-a-fha-loan