WHAT IS A FHA LOAN?

The FHA program is offered only by HUD APPROVED Lenders. FHA offers low down payment of 3.5%, flexible qualifying guidelines, and a maximum loan amount.

There are lots of reasons to ask for an FHA loan instead of taking a conventional 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 it’s 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 - Low 3.5% down payment and that money can come from "a gift from a family member, employer or charitable organization. Other loans don't allow this.

Competitive Interest Rates- 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.

FHA General Guidelines:

• 620 credit score and up-
• Seller can Pay Up to 3% of your Closing Costs (costs to borrow money) (Feb 2010)
• Owner-occupied primary residence
• 1 unit only
• Warrantable, HUD Approved Condo’s OK…No Mobile Homes
• Escrow account for taxes and insurance required
• 2 months reserves (401k, savings, stocks, bonds, IRA’s, etc….GIFT MONEY IS OK)
• 30 year fixed fully amortizing fixed rate loans
• 15 year fixed fully amortizing fixed rate loans
• Cash Out Refinances