FHA Loans

Low Down Payment of 3%

Up to 95% Cash-Out Refinance

FHA Streamline Refinance   (No appraisal required)

Flexible credit scoring  (more lenient)

NO Maximum Income Limits

Gift Funds:   Allowed for the entire 3% down payment  (family member, employer, gov't agency)

Gift Funds:  Closing Costs and Prepaids  (family member, employer, gov't agency)

6% Seller Contributions  (closing costs)

Down Payment Assistant (DPA) Programs allowed

NO Cash Reserves Required

Non-Occupant "Co-Borrower"  (income used to qualify)

31% Front end ratio & 43% Back end ratio  (flexible)

Collections do not need to be paid  (LOX) needed

3 Non Traditional Tradelines OK for credit history  (utilities, phone, etc.)

Gap in Employment OK

Self Employed 1-2 Yrs OK

Permanent Resident Alien OK

Judgements must be paid or have 12 months of arranged payment history

NO pre-payment penalty

Fully assumable mortgage

HUD guarantees "eligible" loan applicants the ability to obtain mortgages with little or no money down. FHA loans can be fully assumable. Loan limits apply depending upon where the property is located in Florida.

FHA loans feature low down payments and flexible guidelines to make it easier to qualify! FHA loans are popular with first time home buyers but they can be equally attractive to move-up buyers and homeowners looking for a home improvement loan. With an FHA loan you can borrow up to 97% of the purchase price of the home. Please keep in mind that the loan will be based on the purchase price or the appraised value, whatever is the lesser amount.

FHA stands for the Federal Housing Administration. FHA was created in 1934 to help Americans realize the dream of Homeownership. FHA was absorbed into HUD in the 1960s and is now known as HUD-FHA.    

The advantages of a HUD-FHA insured mortgage product to a homebuyer are many fold. A homebuyer may apply for a HUD-FHA insured mortgage and purchase a home with little or no out of pocket expense! FHA mortgage insurance permits lenders to make mortgages for first time homebuyers without risk. 

There are no income limits or credit scoring with an HUD-FHA insured mortgage, so most anyone can qualify as long as they have a reasonable credit history and can afford the monthly mortgage payments.

You can also combine FHA mortgage programs with many first time homebuyer grants or down payment assistance programs offered by other agencies. 

The main advantage to a FHA home loan is that the credit criteria for a borrower are not as strict as FNMA or FHLMC. Someone who may have had a few credit problems should not have a problem obtaining FHA financing. Also, FHA home loans are assumable, allowing a person to take over the mortgage without the additional cost of obtaining a new loan. In addition, the seller can pay for most of the “traditional” closing costs (called non-allowable costs) while a borrower's allowable costs can partially be wrapped into the loan. 100% of the down payment and closing costs can be gift funds.

Call me with any questions and let the Home ownership begin.

Thanks, Tom 817-690-9296