247RealEstateLoans.com

Here are just a few of the benefits of a FHA Loan.

- FHA Loans Allow a Blemished Credit History
- FHA Loans Boast Competitive Rates & Terms
- FHA Loans and Cost Advantages

FHA Loans Allow a Blemished Credit History

• You may qualify for an FHA loan even though you have had financial problems.
• FICO scores can be lower than those for a conventional loan.
• Bankruptcy. You can obtain an FHA loan two to three years from the date of your bankruptcy discharge, as long as you've maintained good credit since your debts were discharged.
• Foreclosure. If you keep your credit in excellent shape since a foreclosure, an FHA loan will be available to you two to three years from the final date of your foreclosure.
• An FHA loan is the easiest way to qualify for home buying and refinancing.

FHA Loans Boast Competitive Rates & Terms

• Today's FHA loan terms are pretty straightforward. In fact, in many markets the rates and terms are better than those for 80% / 20% piggyback loans.
• There is little or no adjustment to the interest rate for an FHA loan, as the rates vary within .125 percent of a conventional loan.
• Mortgage insurance is funded into the loan: a premium of 1.5% is added to the loan balance, which in most cases will be paid out over the life of the mortgage, rather than up front and out-of-pocket
• Borrowers can finance 96.5% of the purchase price and put down 3.5 percent. In some instances, when combined with other types of loans, the down payment can be zero.
• Allowable debt ratios are higher than the debt-ratio limits imposed for conventional loans.
• FHA loans are available as both a 15- and 30-year fixed-rate loan.
• First-time home buyers can get the First-time Home Buyer Tax Credit up to $8,000.
• You can refinance up to 97.75% of your home’s value. FHA cash-out refinance loans allow you to take out up to 85% of your home’s value.
• No prepayment penalty.

FHA Loans and Costs

• Closing costs can be financed with the mortgage, lowering the initial costs of purchasing a home.
• FHA also allows seller concessions up to 6% of your home purchase price. The FHA also limits fees that can be charged to the borrower. For example, the loan origination fee cannot surpass 1% of the mortgage amount.

Note: FHA loans are available to anybody but are used most often by first-time home buyers and low- to moderate-income buyers. However, there are no income limit qualifications.

MORE MORTGAGE & LOAN ARTICLES...

• TYPES OF PREPAYMENT PENALTIES
• NO CLOSING COST LOAN, HOW IS THIS POSSIBLE?
• WHAT IS A YIELD SPREAD PREMIUM (YSP)?
• 10 MORTGAGE TIPS THAT MIGHT SAVE YOU $$$
• THE LOAN PROCESS