Wednesday, February 4, 2009

FHA Financing

Many of my customers are utilizing one of the best programs available to buyers at this moment: FHA Loans!
FHA Loans require ONLY a 3.5% down payment – so on a $150,000 home that is only $5,250. Combine this with the low interest rate and it is achievable – particularly for first time home buyers.  In many cases, you can negotiate with the Seller or Bank (if it is a bank owned) and ask for a contribution towards your closing costs (typically between 3 and 6% of the purchase price in many cases).
To qualify for FHA loans, borrowers must be able to document their incomes and assets and not have defaulted on student loans or other government-backed debt. They usually need credit scores of at least 580. Credit scores range from 300 to 850. Borrowers who don’t go the FHA route will face stricter credit requirements on conventional loans. The conventional loans depending on qualifications, typically require 5% or more.
It is a great time to contact us and we can put you in contact with a Mortgage Company that can help.