*Check out my Mortgage Calculator to see if you qualify!!
FHA loans have been around for a long time. Actually FHA (Federal Housing Authority) has insured more than 37 million home loans for Americans since 1934! It was primarily designed to help mainly first time homebuyers (even though you do not need to be a first time home buyer anymore) to purchase a primary residence with as little as 3.5% down payment and FICO scores as low as 620. In the recent past, FHA only accounted for about 3% of home loans originated but now accounts for close to 30%! The reason is that a first time homebuyer may not have 15% down payment or a 720 FICO score that a conventional loan requires. Anyone can qualify with full documentation (pay stubs, W2s, tax returns, bank statements), a 620 FICO, 3.5% down payment, no federal liens outstanding, and is looking to buy a primary residence should be able to qualify for an FHA Loan.
FHA charges an upfront MIP (Mortgage Insurance Premium) of 1.75% of the base loan amount. FHA allows this premium to be financed. Then there is also a monthly MIP until one reaches 20% equity in their home. The monthly MIP is required for a minimum of 5 years and run 55 dollars a month per every 100k borrowed. Example for a 300k loan your buyer will have $5,250 for the upfront MIP financed into the loan amount and monthly MIP will be 165/month.
There are no longer income restrictions either!
More and more sellers/listing agents are beginning to come around and accepting FHA loans. Look at it this way - As a seller, all things being equal, FHA financing opens the doors to more potential buyers as again, most first timers do not have 15% or a 720 FICO score. Sellers shouldn't be scared of FHA buyers as it's a full documentation loan so if they are Pre-Approved by a legitimate lender the buyer is just as qualified as a Conventional buyer.
FHA may be right for you! Please contact me for more information.
Thomas Ray,M.S.,Realtor
Cell/Txt:310-420-1149
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Happy Thanksgiving everybody!!!....Tom
Salt Lake City, UT
Utah Real Estate
FHA is a good program especially for first timers. I also like Rural Housing in areas that qualify.
Nov 27, 2009 02:00 AM
Macomb, MI
Macomb County Michigan
Thomas...discovered this post just today...OK, so I am a tad slow in AR navigation;
our new neighbors did take advantage of the FHA-First Time Home Buyers program; it looks like they will be in the "successful" group of those who also take commitment seriously. This is their 3rd month in the home and a "new pup" has come to join our neighborhood, too.
Happy CA results. Really great city scape--been to CA, but years ago-is that a real CA photo--Oh, and your photo is good too.
Barb & Sal
Dec 04, 2009 10:58 AM
Rainer
15,615
15,615
Thomas Ray
20% of my net back to the Buyer
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