FHA Loans Birmingham, AL

FHA Loans Birmingham, AL

More and more people are refinancing and purchasing a new home with FHA loans, and there is a reason for that. FHA is a great way to maximize your buying potential. With Low down payments, extremely low interest rates and flexible underwriting guidelines. Because an FHA Loan is backed by the Federal Government, it allows lenders to offer low rates.

FHA Loans do not require a large down payment, and in some cases, down payment assistance is available to those who qualify. Even if you are "upgrading" your home you can take advantage of the 3.5% down payment that is required by FHA, these funds may also come in the form of a gift. Also, sellers can contribute 6% towards your closing costs, which reduces out of pocket expenses.

FHA Loans can also be used to refinance your current home even though you may not currently have an FHA Loan. You can take advantage of the lower interest rates available and lower your monthly payments, not only that you can receive cash from the equity in your home up to 85% of your homes value. In addition to receiving cash at closing you may also opt to consolidate your debt into one easy low payment.

FHA Loans Allow a Blemished Credit History
If your credit is less than perfect, FHA might be the loan for you. You may qualify for an FHA loan even though you have had financial problems.

• FICO scores can be lower than those for a conventional loan.
  
• Bankruptcy. You can obtain an FHA loan two to three years from the date of your bankruptcy discharge, as long as you've maintained good credit since your debts were discharged.
  
• Foreclosure. If you keep your credit in excellent shape since a foreclosure, an FHA loan will be available to you two to three years from the final date of your foreclosure.

FHA is a great way to achieve your life long dream of owning a home. Contact Stephen-Michael Washington today to see if FHA is right for you.

Stephen-Michael can also help you with USDA Rural Development, VA Purchase or Refinance, Conventional Jumbo purchases and refinance in Birmingham, AL and throughout the state of Alabama.