FHA loans are going to help us out tremendously in the near future and beyond. I used to do a ton of FHA loans but I have not done more than a handful in the last decade. That is all changing this week for me, I am doing a lot of FHA loans again and here is why:
- Approximately 97% loan to value.
- FHA does not change LTV if the property is in a declining market.
- The 3% down payment can come from a gift.
- 6% of the sales price can come from the seller towards closing costs.
- There are down payment assistance programs that will provide the 3% for true 100% financing.
- Co-Borrowers can actually make a difference and help qualify buyers.
- Non occupant co-borrowers can be on title or not.
- It is NOT credit score driven, there is no minimum score.
- Alternative credit is acceptable.
- Loan limits have been raised to as high as $729,750 in high cost areas.
- 95% Cash out refinances available up to $417,000
- 85% Cash out refinances available above $417,000
- Streamline refis do not need an appraisal.
- See above. You can refinance an FHA loan even if you are under water on your loan.
There are some downsides:
- There is a lot of paperwork. SO WHAT! Fill it out Sparky!
- You have to qualify......see above.
- There are slightly different rules for loan amounts above $417,000. Again, see above!
FHA is great but won't work for everyone. Call a professional mortgage consultant who knows what they are doing and see if it works for you. Did I mention I am licensed in CA and Hawaii........
Call me, let,s do FHA!
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