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
1. 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.
2. 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.
3. 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.
4. Competitive Interest
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:
640 credit score and up-
Seller can Pay Up to 3% of your Closing Costs (costs to borrow money)
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