It is my belief that we will see more Government loans in response to the "Credit Crisis", that the Mortgage Market is currently going through. Here are some great highlight about the FHA product:
While FHA does require a 3 % down payment, they are also flexible as to where that down comes from. It is allowed to be gifted from a family member, and it is also able to come from a down payment assistance
program.
Most conventional loans only allow the seller to contribute 3% of the sales price to the closing costs, but FHA allows 6%!
A major reason why we will see it more an more in this market is because FHA does not have a minimum FICO Score requirement. This is ideal for First Time Home-buyers who may not have a lengthy credit history.
Another perk is that you are allowed to have a non-occupyingco-borrower! In fact in some cases, if the borrower does not have a job and all the income is from a non-occupying co-borrower, thats OK!
Down payment assistance programs are often used with FHA loans. These are non profit organizations who "gift" the money to the borrower and get repayment from the seller at closing. One of the most commonly used programs is "Ameridream." For more information about their program visit: http://www.ameridream.org/
Find a lender in your area who does FHA loans:
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