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“100% financing available through down payment assistance programs”

"100% financing available through down payment assistance programs" - Troy Schuricht

SITUATION:

You would like to purchase a home but one or all of the following applies to your situation:

very limited money for a down payment
marginal credit history
high debt load

FEATURES:

The Federal Housing Administration (FHA) is a division of HUD, an agency of the US Government. The FHA insures lenders such as Fairfield Mortgage against your default on a mortgage, which enables you to obtain a loan at a great rate and with only a 3% down payment. The program is available for both first-timers and repeat homeowners alike.

BENEFITS:

An FHA loan enables you to buy a home with little money down and less than perfect credit at an interest rate that is typically only .25 - .50% more than prevailing conventional mortgage rates. This loan also allows your lender to "stretch" your qualifying ratios a little more than many other types of loans.

DETAILS:

Maximum loan amount in metro Phoenix is $346,250 for a one-unit property
Mortgage Insurance (MIP) is required as follows: (Up-front = 1.5% of the loan amount and can be financed into the loan + Monthly = .5% of loan amount divided by 12)
Primary residences only
No pre-payment penalty
15 and 30 year fixed-rate loans available as well as a 1-year and 3-year adjustable rate mortgage (1% yearly and 5% lifetime caps)
Seller is required to pay these closing costs for the buyer: underwriting, doc prep, and tax service fee
100% financing available through down payment assistance programs
Down payment can come from a gift from a relative, friend, or charitable organization
Targeted credit score of 600 or higher
Very limited late payments or other derogatory credit items allowed over previous 12 months
Targeted debt ratio of 41% and lower
Excellent program for co-signing situations (still only have to put 3% down)
FHA appraiser is required to do a scaled-down inspection of condition of property
Mortgage is qualifying-assumable