1 in 4 appleton | Green bay Mortgage Loans are originated using fha
January 2016 - The timing seems right to open up discussions about FHA home loans again. With the new underwriting guidelines that became effective September 14, 2015, and the increase of minimum credit score requirements adopted by many local and National banks, we are delighted to provide you with up to date information.
FHA provides an array of products; FHA purchase loans, 203K home renovation or repair loans, rate and term, and cash out refinance loans, and finally their streamlined refinance loans for current FHA loan holders. FHA does offer one very special loan; The Back to Work FHA loan - This special loan allows for recent bankruptcy, foreclosure, or short sale.
You may lift an eyebrow to when I tell you that nearly one quarter of all loans made nationwide are FHA insured -
Let's take a peek at why consumers are so attracted to this type of home loan:
1. Low down-payment requirement - Just 3.5% of the purchase price
2. Generous Seller Credit - up to 6% of the sales price - By structuring your home purchase offer utilizing the
6%, a buyer can get into their new home with just 3.5% down while the 6% credit from the seller is used for all closing and pre-paid items including the buyers new homeowners insurance covering the first year of coverage.
3. Buyers with lower credit scores can qualify and enjoy a very competitive fixed interest rate. Compare this to conventional loans via Fannie Mae and Freddie Mac, where many home buyers with lower scores would not qualify.
4. Buyers using an FHA loan can qualify with credit scores as low as 580 and in many cases, with a reasonable scenario, loans can be approved with scores of 500.
5. FHA loans are one of the only home mortgage loans that can be "assumed". With today's low interest rates, this may be a very very beneficial feature in the future, when you eventually sell your home. The only other Government loan with the assumption feature is the Federal VA home loan.
This is the first of a series I will be writing - I hope you've found this information helpful. If you need any assistance we are here to help in any way we can. Make it a great one and don't forget to use that smile you have with you 24 hours a day!!!!