FHA mortgages are not as complex as many make them out to be. They are not the next subprime mortgages. FHA loans
have been around since 1934, while subprime mortgages started to come
into full force back in 1994. Lastly, just because someone said that
they can qualify you for a conventional loan and that it would be
cheaper than a FHA mortgage, might not always be correct.
What else should you know about FHA mortgages?
- If you put 10% or less down and your credit scores are less than 680, 99% of the time, your payment will be much lower on a FHA mortgage than it would be on that conventional loan. Don't let anyone tell you differently. I can show you proof. Numbers don't lie, people do.
- FHA mortgages are not just for first time homebuyers.
- They are not just for those with less than perfect credit.
- You can do up to a 95% cash-out with a lower rate than you can do with a conventional loan up to 90% LTV.
- You need only 3% of your own money out of pocket.
- You can get into a home with no money out of pocket with the help of down payment assistance programs. One example is the Nehemiah Program. Stay away from those that say you can do 100% with FHA. There is no such beast. But you can still do creative financing to make it look like 100%, but there is no 100% financing. That is false and misleading no matter how you view it. Creative FHA financing -- No money out of pocket from the buyer!!!
- It's the only true residential type of mortgage that can be manually underwritten with great rates.
- Bankruptcies allowed -- discharged between 1 to 2 years after the bankruptcy. FHA Credit -- Understanding what works
- You can have a non-occupant co-borrower help you obtain a FHA mortgage. FHA -- Non-Occupant Co-Borrowers, are they allowed?
- You can buy a family members house and use the equity as your source of down payment and for closing costs. FHA Gift of Equity Loans
- I can do credit scores down to 500, even after a bankruptcy, as long as the credit fits the profile. Many companies can't do below 580 and some under 620 on FHA mortgages.
Make sure you seek a mortgage professional that can help you find the right programs, answers all of your questions, and is able to offer any program out there. Each consumer is different with different needs.
Some things to pay attention to when shopping for any kind of mortgage.
Copyright © 2008 by Jeff Belonger
Author of this blog : Jeff Belonger
e-mail : jbelonger@ihmci.com
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