I had a conversation with my dad this evening because he asked me if I had been paying attention to all of the news in regards to mortgages and the real estate market. This led me to explaining to him about FHA and how it's not used as often. Do you know what he said? I thought FHA mortgages were for First Time Homebuyers and for people with bad credit. Rut row....
Hence why I am here to explain to everyone that this is not the case. And as I stated here, Will Conventional loans be just like the Subprime mess?, I see more and more people obtaining FHA mortgages now.
What are some of the positives in regards to FHA mortgages?
- You can have good to great credit. As a consumer, is your credit bad enough to deserve the worst scenario? --
- You can put as little as 2.25% down.
- You need only 3% of your own money.
- You can get 100% monies gifted to you.
- You can use DPA programs to help you and if down correctly, you might not need any money out of pocket. Creative FHA financing -- No money out of pocket from the buyer!!! -- Part 1
- Credit scores as low as 500.
- Bankruptcies allowed -- discharged between 1 to 2 years after the bankruptcy. FHA Credit -- Understanding what works
- Debt to income ratios of 31%/43% -- And these can exceed sometimes up to 50% to 55% depending on the approval system.
- You can have a non-occupant co-borrower help you obtain a FHA mortgage. FHA -- Non-Occupant Co-Borrowers, are they allowed?
- You can buy a family members house and use the equity as your source of down payment and for closing costs. FHA Gift of Equity Loans
Overall, common sense underwriter is used often. People making decisions, not computers.
Make sure you seek a mortgage professional that can help you find the right programs, answers all of your questions, and is able to offer any program out there. Each consumer is different with different needs.
Some things to pay attention to when shopping for any kind of mortgage.
For more information on how you can obtain your dream home, please click here : Mortgage Financing Options
Copyright © 2007 by Jeff Belonger