fha: FHA new construction permanent mortgage loans - 09/28/16 06:16 AM
FHA new construction is a great program for borrowers who want to build their own home and do not have a large down payment. The FHA new construction program allows for a down payment as little as 3.5% of the lesser of the construction cost or appraisal value.
The buyer can use their own land equity, or they can purchase the land with the construction loan. This program is one time close, permanent financing. The permanent interest rate is locked prior to closing.
These two features, locked permanent interest rate and low down payment, make the FHA new construction program very attractive for … (0 comments)

fha: Purchase mortgage comparison: FHA 96.5% and Conventional 97% - 09/28/16 02:52 AM
Conventional 97% purchase programs can be attractive alternatives to the 96.5% LTV FHA purchase loan. There are distinctions between the features of these two mortgage programs that a home buyer should consider when considering a mortgage for a home purchase.
Interest Rate:
Typically FHA will have a lower interest rate. For higher credit scores the interest rate difference is less. For lower credit scores the interest rate difference can be significant.
Mortgage Insurance
Generally, FHA can have higher monthly mortgage insurance, depending on buyer credit scores. FHA also has an upfront funding fee that is typically added to the loan amount. Additionally, at present, FHA mortgage insurance … (0 comments)