The Advantages of FHA Loans
In many regions of the US, FHA loans have only recently come back into
vogue, so a lot of real estate agents and mortgage originators aren’t
familiar with this great resource. The following are a just a few of the
recent changes that have made FHA loans a more attractive option again for
some consumers looking to buy a new home or refinance an existing one:
1) Fee’s. I do NOT charge an origination fee on my loans
2) The FHA changed its appraisal and fee negotiating guidelines. In the
past, many sellers steered clear of FHA loans because the appraisals were
too strict and certain fees were non-negotiable. The FHA has greatly
loosened these guidelines to make it easier for both buyers and sellers.
3) FHA loans are much cheaper now. Because FHA loans are federally insured,
they tend to trade at a higher premium in the secondary market. This means
lenders can often charge a lower rate.
Other FHA Benefits:
1) FHA loans are typically not as credit-score restrictive. Borrowers
usually can have a lower score than with other products and still qualify
for a good rate.
2) FHA loans require as little as 3.5% down, and allow a) Sellers to
contribute up to 6% of the buyer’s purchase price to close.
3) FHA loans allow down-payment assistance programs that are not
seller-funded. *It is important to note that there are 22 ways in which FHA
allows the funds for buyer contribution, including relative gifts and loans.
4) FHA loans allow non-occupying co-signers (i.e., mom/dad) to co-sign on
the mortgage, even if the occupying signer (i.e. son/daughter) has no
income. Note that specific restrictions apply.
NOTE* FHA Loan limits are set to DECREASE (as housing prices have
obviously). Buyers on the fence understand: Now is the time
Information compliments of Travis Newton
WJ Bradley Mortgage
Branch Manager/Sr. Loan Officer