FHA Home Loans - Santa Rosa, CA - Top 10 FHA Loan Benefits for home buyers
I met up with a new home buyer today who asked me about FHA loans and why she should use this program instead of a standard conforming loan program. She was a first time home buyer who had meet with several lenders and was a bit overwhelmed by all of the information she had thrown at her. Since she was only putting 5% down, I felt the FHA loan was the best fit for her and gave her a top ten list of all the benefits she would enjoy. I also ran a comparison worksheet for my newly endoctrinated home buyer to show her the mathmatical differences. The lightbulb over her head kicked in within 10 minutes and she proceeded with the loan application. Ah, success! I love the lightbulb! So, in the interest of sharing with my Sonoma County Wine Country Realtors in Santa Rosa, I've made another top ten list of benefits for home buyers using the FHA loan. If you're looking for information on VA loans, I have another top ten list on the benefits of a VA home loan as well. Just click on this title: Tep Ten VA Benefits for Sonoma County Home Buyers.
Here's the list of top ten FHA Loan benefits for home buyers:
- FHA Loans only required 3.5% down at this time.
- FHA Loans will finance the Upfront Mortgage Insurance. You don't have to come up witht he extra cash to pay for a premium that can equal up to 1.75% of the mortgage.
- FHA Loans don't penalize you on rates for a Low Fico score. Currently, the minimum fico score is 620. If you have a 620 fico, you pay the same rate as someone who has a 700 fico score.
- FHA Loans have no prepayment penalties. You're welcome to pay the loan off anytime!
- FHA Loans offer more flexible debt to income requirements at this time.
- FHA Loans allow for non occupant co-borrowers. You can combine your income and expenses with a non-occupant borrower's income and expenses to qualify. Must be a relative or really close friend.
- FHA Loans are assumable. This is a great tool for the home buyer when they become a home seller during high rate markets. You can assume a nice 5% loan.
- FHA Loans allow the seller to contribute up to 6% of the sales price for closing costs. FHA Loans allow for non-traditional credit on purchases.
- FHA Loans allow, at this time, for gift funds from family member for the down payment and closing costs.
- FHA loan limits are high enough to cover the majority of the prices in the county that you live. Here are the loan limits for Single Family Residence:
2009 FHA Loan Limits for Single Family Residence in Northern California
County - FHA Loan Limit
- Alameda $729,750
- Contra Costa $729,750
- Marin $729,750
- Monterey $729,750
- Napa $729,750
- Sacramento $580,000
- San Francisco $729,750
- Solano $557,500
- Sonoma $662,500
There are additional benefits that you can take advantage of with an FHA home loan, but I don't want to overwhelm anyone with too much information. So, contact me if you want more! ;-)
BTW- I only posted loan limits for Single Family Residences. If you want to know about the other loan limits for a different county or for 2 to 4 units. Send me an email. Also, note: I wrote "at this time" several times. It's important to understand these benefits are going to change and will continue to change to adjust to the current market conditions.
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