Freddie/Fannie (conventional loan lenders) tiered interest rates higher for lower credit scores and eliminated many of their No-Down Payment loans.  Sub-prime doesn't really exist anymore and the Mortgage Insurance Companies won't insure 100% loans or buyers with less than 620 credit scores.  These actions over the past 4-5 months have left a big void in the market. Luckily, FHA is filling much of that void.

What are the benefits of FHA?
1. Low down payment of only 3%.
2. Credit scores count, but FHA offers much flexibility and credit scores in the 500's are OK.
3. Family members, close relatives can provide gift funds for all costs
4. The seller can pay up to 6% towards buyers closing costs
5. Relatives/close family friends may act as co-borrowers and NOT live in the property
6. Interest rates are not tiered as steeply as conventional loans for lower credit scores
7. Down Payment Assistance programs are still available and qualify with FHA financing.

Effective July 14th, FHA is changing their Mortgage Insurance Premiums.  For most buyers there will be little change, only those with credit scores under 570 will feel the relatively small bumps.  (If you would like a copy of these changes, send us an email at cheyennem@fairwaymc.com and ask for our FHA changes flyer.

FHA is a wonderful tool for home buyers and it's important to use a Certified Mortgage Banker.

FAIRWAY Independent Mortgage Corp. is licensed as a 1st Mortgage Banker and we have a Certified Mortgage Planning Specialist on site! Call us at 717-431-9299.

We process, underwrite and fund our FHA loans.  We control the process from start to finish which helps our clients with a smooth process and helps our Realtors with speed and communication.