It seems as though MI companies recently have been trying to get creative with the way they are structuring their new mortgage insurance guidelines. When the mortgage market tightened up, most borrowers could no longer qualify for a conventional loan with 5% down let alone 20% down. MI companies are now offering 3% down but still many borrowers do not fit into the small qualifying box they have created. What is the alternative?
FHA is cornering the market on loan submissions. Yes, they recently made some changes increasing the PMI which increases the monthly mortgage payment but at least the average person can still qualify. FHA will currently allow a 620 fico score and even lower in some cases with as high as a 59% debt to income ratio. If you have a fiance or relative that can gift you your full down payment, they will allow that too. Closing costs can usually be negotiated into the contract to have the seller pay most if not all of them. Relatives can help co-sign on the loan without living in the property. Foreclosure and shortsale requirements are less stringent and if you have had a bankruptcy, you could be back into a home in as little as 2 years! So how much are some really out of pocket buying a property using an FHA loan?
$0
That's right, many borrowers step into their new home with no money out of pocket. In this day of age with lending requirements getting stiffer each day it seems FHA is still King!
TheMortgageJockey
602-684-6951 Direct line
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