Federal Housing Administration Loans
Looking for other ways to get approved for a mortgage?
Lenders are tightening their restrictions and these rules are making it harder to get approved for home loans but FHA loans offer home buyers several great programs. KMA offers FHA Loans and FHA refinance.
Down Payment Assistance (taking a 97% loan and turning it into a 100% loan) will be banned as of Oct. 1st 2008. The new down payment required for FHA loans will be 3.5%, not 3% also starting Oct. 1st.
On the plus side, FHA still allows the down payment to be a gift from parents, the seller can still pay 6% of the buyers closing costs (but can't pay any part of the down payment) and the government will give first time home buyers a $7,500 tax credit so that may help get some buyers going. The credit is good for homes purchased between last April and July 1st 2009.
Benefits of FHA Mortgages
- Low Closing Costs
- Low Downpayments
- Credit Approvals Made Easy
- The maximum allowable loan is 97.75%
- No Real Credit Score Requirement
- Easier to qualify if you've had a Recent Bankruptcy
What are FHA Loans?
To clear up any confusion, the Federal Government insures your mortgage loan so your lender can offer you a better deal on your home loan. The Federal Housing Administration is the governmental organization that provides these loans and having been doing so since 1934. Read further, to discover some of their programs currently available.
Mortgage Programs for First Time Buyers
Are you trying to buy your first home? FHA offers a program where you can put as little as 3.5% down! Another benefit is that you can roll your closing costs into the loan which will save you even more money upfront. These types of loans are available on 1-4 unit properties.
There are programs for Seniors that include a reverse mortgage for persons older than 62 and own their home outright or have a low balance remaining.
Green FHA Loans
Yes, FHA is even going green. Well sort of, they do offer an FHA Energy - Efficient Mortgage which can include the costs of energy improvements into the mortgage. And with the energy costs rising this can save you money both now and in the future. It seems like everthing else is going green...why not FHA?
- No Cash Reserve Requirements
- Gifts can be used for entire transaction
- Standard 30/15 year fixed mortgages
- Seller can contribute up to 6% of closing costs v. 3% standard
- No penalties for pre-payments
- non-occupying co-borrower makes it easy to qualify (i.e. mom co-signs with her good credit and income but won't live there)
- Read More About FHA Requirements
These FHA requirements are meant as a guideline please contact our office for more specific information about your situation.
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