95% FHA Cash-out Loans for Borrowers with Less Than Perfect Credit

We are now offering 95% FHA Cash-out loans for borrowers with less than perfect credit. These loans have been updated with new higher loan limits up to $544,000 depending on the county; however, most metropolitan counties have a limit between $200,000 and $300,000.

It is no secret that over the last 4 months there has been a real credit crunch in the weaker credit markets. Many of our clients who have credit issues in the past are now turning to FHA loans for home financing. FHA is a great alternative to sub-prime, since instead of using credit scores, there is an actual examination of recent credit history. Many borrowers who have had credit problems in the past can now get a second chance. Borrowers who have put at least one year of good credit under their belts, or two years since a bankruptcy, have an excellent chance of getting approved.

Also, unlike most sub prime loans, FHA does not have any pre-payment penalties. They are insured by the government, but unlike other government programs, there are no income limits. Mortgage insurance has also been reduced in half and is now tax deductible.

FHA had been dormant for years, but has now been given a second life. For current homeowners, we can help them pull out 95% of their equity. In fact, cash-out refinances have actually out-numbered purchase transactions. There are fixed rates, adjustables, and buy-downs available. The programs are open to everybody and the rates are fantastic.

For more information, contact:
Stephen Katz

http://www.katzmortgageteam.net/