The main advantage to a FHA home loan is that the credit criteria
are not as strict as Conventional Loans sold to Fannie Mae (FNMA) or
Freddie Mac (FHLMC). Someone who may have had a few credit problems or
no traditional credit should not have a problem obtaining FHA
financing. The monthly mortgage insurance premium is cheaper for an
FHA loan verses a conventional loan with 3% down. Finally, FHA loans
may may require less income to qualify as they will exceed the
Conventional debt ratios of 28/36% as their standard is 29/41%.
The most popular FHA home loan program is by far is the
203(b). This is your standard fixed rate or adjustable rate loan for
1-4 family owner occupied houses and only requires a minimum of 3%
from the borrower. This loan also permits 100% of their money needed
to close to be a gift from a relative, non-profit organization, or
government agency.
Competitive and attractive rates Low down payment No income limit
restrictions Long-term amortization Fixed and arm loan rates Financing for 1-4 unit properties PMI is less than what it would be for a conventional
loan 3.5% down for 96.5% financing 100% financing with gift money is
available. Please call for details.