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 :
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