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FHA loans are government-insured mortgages with less-rigorous criteria for borrowers.. Popular with first-time homebuyers, FHA home loans require lower minimum. But there's a catch: borrowers must pay fha mortgage insurance.. The FHA allows home sellers, builders and lenders to pay up to 6.

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Loans are generally more difficult to obtain Loan terms are not as good Price per unit is higher Banks prefer local borrowers Properties are generally older The economics cannot justify full-time, on site management and maintenance And, it is usually difficult to manage effectively.