Hi guys! Thankfully it's been very busy and I've been having a lot of buyers ask about FHA Loans Vs. Conventional Loans, so I thought I'd do a quick little video blog to go over some important points regarding FHA loans. Take a look and let me know what you think:
1. FHA does not do the lending but insures the lenders in case the borrower defaults.
2. FHA loans require a lower down payment than a conventional loan. Typically 3.5% down or higher
3. Credit score is a factor but not as heavily weighted as in a conventional loan. Even if you have foreclosures and bankruptcies, you still may qualify.
4. Strict mortgage insurance policy - effective June 3 of 2013 FHA loans will have a monthly PMI for the duration of the mortgage, no matter what the equity is on the home.
If you have more questions regarding purchasing a home or FHA loans, please contact us below.
Thank You,
Peter Lee
Cornerstone Realty and Rentals, Inc.
www.cornerstonerealtychicago.com
847-496-0081
"Helping you lay the foundation for your future"
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