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WHAT
IS A FHA LOAN?
ALSO KNOWN AS THE FHA 203(b) LOAN OR FEDERAL HOUSING AUTHORITY
This
is the most commonly used FHA program. It offers a low down payment,
flexible qualifying guidelines, limited lender's fees, and a maximum loan
amount.
There are
lots of reasons to ask for an FHA loan instead of taking a conventional or
an expensive and risky sub-prime mortgage loan. Why not take advantage of
the many benefits and protections that only come with FHA:
Easier
to Qualify - Because FHA insures your mortgage, lenders are more
willing to give loans with lower qualifying requirements so its easier for
you to qualify.
Less
than Perfect Credit - Even if you have had credit problems, such as
bankruptcy, its easier for you to qualify for an FHA loan than a
conventional loan.
Low Down payment - You only need a low 3.5% down payment and that money
can come from a family member, employer or charitable organization. Other loans
don't allow this.
Costs Less - Many times, FHA loans have competitive interest rates
because the loans are insured by the Federal Government. Always compare an
FHA loan with other loan types.
Some Guidelines: (Seller is allowed
to pay up to 6% of closing costs)
580 middle credit score!!! (most companies need 720)
Owner-occupied primary residence only
1 unit only
Warrantable, HUD Approved Condo’s OK…No Mobile Homes
Max loan amount $315,000
Borrower can not own any other properties
Monthly Mortgage Insurance is required but is
very low
Escrow account for taxes and insurance required
2 months reserves (401k, savings, stocks, bonds, IRA’s, etc….GIFT IS OK)
30 year fixed fully amortizing fixed rate loans
15 year fixed fully amortizing fixed rate loans
FHA HAS LOAN LIMITS :
click here for
FHA loan limits
BUY A HOME NO MONEY DOWN:
CLICK HERE
*LET US SEE IF YOU QUALIFY!!!
If you would like to buy a
home.....click
here to apply online |
secure site!
