Top 10 reason why to consider an FHA Mortgage

Core Mortgage Financial list of top ten items to consider when choosing a loan product. Below are top 10 reasons why an FHA mortgage might be right for you!

1) First time home buyer: FHA loans are designed to first-time buyers. FHA/HUD specifically designed the program to provide financing alternatives to low to middle income families. The program was also designed to spur home
ownership.

 


2) Low Down payment: FHA requires just 3.5 percent down payment for 2011. The down payment funds can be gift funds from a relative, making it easier for someone with low cash reserves to purchase a home now rather than waiting to build up a savings account.

3) Credit Score Minimum: FHA Credit scores requirements not as high as other loan programs. Any credit derogatories must be cleared up or have a good explanation as to the reasons for the lates. Core Mortgage Financial lender portfolio allows credit down to a 560 middle score.

4) Employment: The borrower must have accumulated two years of continuous income in the same field of work. Full-time students now working in their field of study may be able to count school as part of the two-year requirement. All income must be reported on tax returns.  Some lenders recently have changed their guidelines to show that only 6 months of employment are needed to get Florida FHA mortgages.

 

4) NO income Limits: FHA mortgages do not have income restrictions. This is particular important for borrowers that have good income but just not 20% down payment to complete a traditional mortgage. FHA mortgage loan caters towards the low down-payment programs for those with low or median income.

5)Primary Residence Only: FHA loans are limited to owner-occupied properties and are available for one to four units. Three-to-four unit properties must be self sufficient.

6) Debt VS Income: FHA qualifying ratios for FHA loans are more relaxed than the typical conventional financing, allowing the borrower to purchase a little more house. Some lenders will allow someone to reach a 55% Debt to Income ratio. Compensating factors might be needed, like strong cash assets and excellent credit is an example.

7) Rehabilitation Loan: FHA also offers a Rehabilitation of Property Program. That dream home you’ve discovered may need some repairs and rehabilitation. This program allows the repair costs to be rolled into the loan.

8) FHA Refinance program: FHA borrowers can refinance without an appraisal. This program can assist borrowers who want to enjoy the current low mortgages rates but do not have the equity.  You can roll all of the closing costs into the loan and have ZERO out of pocket expenses. I expect the no appraisal program to be completely gone this year.

9) FHA Seller paid closing costs: The seller  can pay up to six percent of the purchase price towards to the buyers closing costs.  This allows the borrower not to come up with some much out of pockets expenses and just deal with the down payment funds only.

10) FHA vs conventional. FHA mortgage parameters are not as strict like a conventional loan.( Fannie/ Freddie) Conventional loans request large down payment and 740+ credit scores. If you do not fit "in the box" of a conventional loan, your rate will be higher. FHA mortgages  do not hold the same criteria measures as the conventional loan.

Hopefully the TOP 10 reasons why to consider an FHA mortgage has been beneficial for you ! Please do not hesitate to contact Core Mortgage Financial with any FHA mortgage questions. We have many different FHA products and portfolio options for you.

855-554-2673 ( Toll Free)
Core Mortgage Management Team
The Florida FHA Mortgage Experts !