FHA loans are better than ever

Homeownership is all about working with the right people. The reduction in upfront mortgage insurance (MI) fees on FHA (Federal Housing Administration) loans isn’t the only good news for your aspiring homebuyers. At Bank of America, we offer the FHA Hybrid ARMs in addition to the traditional fully amortized fixed loan products to best meet your client’s needs. FHA loans provide many benefits; including less out-of-pocket cash required from the borrower: Minimal cash needed – Just a 3% minimum investment that can come from a variety of sources. 2/1 buydown option – customers must qualify at Note rate. Alternative credit references acceptable – utility payment history, insurance premiums. Increased loan limits: FHA has increased the maximum loan limits determined by median house prices for that area and will vary from county to county. Reduced appraisal requirements: FHA permits an “as-is” appraisal for existing properties and eliminates required inspections for wood destroying insects/organism, a water well (individual water system), and for a flat roof when certain conditions are met (See Bank of America for details). Expanded loan products: Fixed rate and FHA Hybrid adjustable rate mortgage (ARMs). Streamlined refinancing: Less documentation and automated underwriting for faster approvals.