Top 10 reasons FHA is a great way to finance your home....

By
Mortgage and Lending with Social Media - Infinity Home Mortgage Company, Inc

top ten


FHA mortgages, why are they still not talked about as much as they should be?

  • Many mortgage companies are not FHA approved.
  • Many loan officers do not truly understand the difference between FHA mortgages and Conventional mortgages.

Overall, what a great time to purchase a home or to refinance your mortgage. Mortgage rates right now are the lowest that they have been in over 2 years.

So, with that said, let's check out why many times, FHA financing is better than conventional financing.....




Top 10 Reasons why FHA mortgages are better than Conventional mortgages


10. Your monthly MMI vs PMI (monthly mortgage insurance) is lower monthly with 10% or less down.

9. You can get 100% gifted to you from a family member for down payment and closing costs.

8. You can be in a Ch. 13 bankruptcy after 1 year and buy a home or refinance.

7. You can have a non-occupant co-borrower help you qualify to purchase your home.

6. You can get up to 6% seller help for closing costs.

5. FHA mortgages for damage credit with credit scores as low as 500 and still put just 2.25% down.

4. With credit scores under 680, your FHA rate would be lower than a conventional rate.

3. Declining market areas do not affect FHA mortgages as they do conventional mortgages.

2. FHA Debt to income ratios of 31%/43% compared to Conventional of 28%/36% -- And these can exceed sometimes up to 40%/50% with a manual underwrite.


And the number 1 reason why FHA mortgages could be your best option is…..

– Because I said so….. but seriously, the proof is in the pudding. You can find out why I can make this statement by following these links & then you can form your own opinion :





For those that are in the home buying process or possibly in the middle, please read this series.

The Mortgage Process Series :




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For more information on FHA loans, please go to this link. The FHA Expert

For more information on how you can obtain your dream home, please click here : Mortgage Financing Options

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!


Copyright © 2008 by Jeff Belonger

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For more information on FHA loans, please go to this link. The FHA Expert

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

HUD

 

For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors

 

Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc

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Rainmaker
245,408
April Hayden-Munson
Brookfield, WI
Brookfield Wisconsin Real Estate
Great advice Jeff.  I think FHA is now back and will become more well known in the upcoming years.  It's the answer to little money down....and being able to get a loan.
Mar 01, 2008 07:03 AM #1
Rainer
68,685
Alan 'AJ' Nisen California Contra Costa Mortgage Officer
A Large Bank in America - Lafayette, CA
Jeff, Great post.  As some of my other programs have fade away, FHA is becoming an important option for a lot of home buyers. AJ
Mar 01, 2008 07:06 AM #2
Rainmaker
259,633
Melina Tomson
Tomson Burnham, llc Licensed in the State of Oregon - Salem, OR
Principal Broker/Owner, M.S.
I've always been a big fan of FHA.  I think we will see a return to this.
Mar 01, 2008 07:14 AM #3
Rainmaker
826,134
Fran Gaspari
Patriot Land Transfer, Inc. - Limerick, PA
"The Title Man" - Title Insurance - PA & NJ

Jeff,

You know...I'm a believer!!! Thanks,   Fran

Mar 01, 2008 07:18 AM #4
Rainmaker
702,597
Brian Block
RE/MAX Allegiance, Managing Broker/Branch Vice President - McLean, VA
Northern Virginia & D.C. Real Estate
Jeff, excellent list.  We had a company meeting this week and a lender from Countrywide ran down a similar list with us about FHA and touted the FHA program as the way to go.
Mar 01, 2008 07:34 AM #5
Ambassador
750,130
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

APRIL.... well, FHA should have never left. The only complete in the last 4 years was because in several areas, the median priced home out paced the maximum FHA loan limit. But I even saw many loan officers put clients in another program other than FHA, just because it was easier for the loan officer. 

On another note, where is Brookfield, WI?  My dad was born and raised in Two Rivers, WI, about 2 hours south of Green Bay. And thanks for the compliment.

AJ....... just as I stated to April, this was a good option for many in the last 3 to 4 years, but it was more work for the average loan officer.  Thanks for the polite comment.

MELINA..... same here.... I have been doing mortgages for 15 1/2 years and my first FHA deal was 1 1/2 years into the business.  I love when loan officers still argue with me even today, how overall, conventional is better. But they never give me an example why they say this.  Go figure... I highlight proof in one of my links. You can't beat or argue real numbers.

FRAN.... yes, you have said this before... thanks for stopping by.  Wondering where you have been. Did you miss my 3 part series on marketing?

BRIAN.... bah humbug about CW...  lol  Seriously, it's good to make people aware of these differences. Even those lenders that put clients in a FHA loan, they don't know all the differences or the reason why.

 

Mar 01, 2008 07:47 AM #6
Rainer
10,219
Trevor Jules
2 Blue Chip Professionals, LLC - Ellicott City, MD
Great list Jeff. The numbers in the month savings FHA vs Convention speak for themselves.
Mar 01, 2008 09:46 AM #7
Rainer
333,723
Danny Thornton
R & D Art - Knoxville, TN
WordPress Guru
Jeff, great information here. We just got an FHA done on a 52% back end ratio and I was floored. Thanks for sharing these.
Mar 01, 2008 11:16 AM #8
Ambassador
1,091,430
Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE
I like those points...to the point and great info for the consumer!
Mar 01, 2008 12:03 PM #9
Rainmaker
660,086
Randy Prothero
eXp Realty - Mililani, HI
Hawaii REALTOR, (808) 384-5645
#11 Many of the other loan programs are getting harder to find for low down payment purchases.
Mar 01, 2008 12:10 PM #10
Rainmaker
566,631
Delaware Junk Removal Residential And Commercial Hauling Clean Outs
Delaware Junk Removal 302-530-9186 - Wilmington, DE
Whole House Clean Outs, Basements, Garages, Attics
Jeff, I am going to print this out!  Did the max FHA purchase price just go up?  What is it now?
Mar 01, 2008 12:16 PM #11
Rainmaker
73,960
Barbara Hershey
Bath, ME
Realtor, Maine Real Estate
Jeff - Thanks for  the info!  I'm going to bookmark this so I can share it with my clients.  Although with that#1 reason...who needs 2-10?! :)
Mar 01, 2008 12:28 PM #12
Rainmaker
337,519
Thesa Chambers
Fred Real Estate Group - Bend, OR
Principal Broker - Licensed in Oregon
Jeff - and another thing is they are easier than most agents think they are - nice job
Mar 01, 2008 03:25 PM #13
Ambassador
750,130
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

TREVOR.....  yes, numbers speak for themselves..  thanks for the compliment.

DANNY.....  I am assuming it was through DO, the automated system?  We'll manually underwrite up to a 50% back. I have closed several with mid 50s, but through the system.  Hey, I closed one that was a 95% cash-out refinance with a 41% front and a 53% back.

SALLY.... to the point...  lol  seriously though, thanks for the compliment.

RANDY..... hey, look, it's the Hawain tandem, back to back.  ;o)  In regards to your statement?  Well, FHA was better than several of these programs that were dropped previously in my opinion. 

LARRY....  please do... share it. And it was voted a YES to raise the limits, but the limits have not been put on paper as of yet. I think they have until this coming week. So we should know something very soon.

BARBARA....  my pleasure.  in regards to my number 1... lol  Thanks and thanks for stopping by.

THESA.... yes, so true... but you need to be careful and define easy. Many of mine are hard or take time, because they are credit challenged. And for the fact that I need to help them not only get their credit in line, but help with the credit explanation letters...  so, they might seem easy to the real estate agent, but they can be very tedious. But with a very good to great loan officer, some loans that many would deny, would be approved. I closed 2 in the last 30 days that were denied by other lenders. 

 

Mar 01, 2008 03:30 PM #14
Rainer
333,723
Danny Thornton
R & D Art - Knoxville, TN
WordPress Guru
Jeff, actually all of ours are ran through LP first. DU is our second try and we no longer us DO.
Mar 01, 2008 03:32 PM #15
Ambassador
534,090
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life
Jeff - FHA is a great avenue for many homeowners, that's a fact.  Love the simplicity/information with which you wrote this post.  Nice work amigo.
Mar 03, 2008 05:35 AM #16
Rainer
32,037
Ken Stampe
iBrandPlan.com - Grow your e-Profile & Brand - Dallas, TX
iBrandPlan

You missed one....

 The "StreamlineK" version of the standard FHA loan enabling you to purchase or refinance and include money for repairs, upgrades, appliances, etc. What conventional program will do everything you mentioned above AND provide you money for new carpet, retiling the bathroom and a new refrigerator?

Mar 04, 2008 12:56 AM #17
Ambassador
750,130
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

DANNY..... well,in either case, you are running them through one system or another.  It just comes down to the compensating factors, typically assets.

JASON...... thank you very much for the kind words and for the compliment.

KEN.....  darn... how about I missed about 5 more... lol  I thought about another one the other day, but I can't remember now... lol  But yes, that's a good one that you chose.  thanks

 

Mar 05, 2008 12:00 PM #18
Rainmaker
217,562
Mark Organek
And the United States of America - Mesa, AZ
On a journey to accomplish one huge goal.
He's exactly right.  If you're a Realtor in New Jersey, Pennsylvania, Delaware, Connecticut, Michigan, Wisconsin, Colorado, Maryland, Virginia, North Carolina, South Carolina, Florida, Nevada, Oregon, California, and Kentucky where he originates, give him a call to learn more about FHA if you're not 100% familiar with the program and its benefits.
Mar 08, 2008 03:10 PM #19
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