Rather than trying to keep up with the myriad of financing options available, I refer my clients to several excellent local lenders who have served my clients very well.
However, I follow the lending situation closely since it is such an important part of the real estate business. And I've notice that FHA loans have become an increasingly important option for many buyers.
Here's an article by Mary Frances Burleson, president of Ebby Halliday, REALTORS® on this subject.
The recent tightening of mortgage lending standards makes FHA financing more attractive than ever for many buyers.
FHA is a great loan for first-time buyers, and is also a good choice for others as well. Here's why...
Low Down Payment
A down payment as low as 3.5 percent from the buyer's own funds is usually required. However, in many cases, the lender may allow the buyer's down payment to be a gift from a relative.
Modest Credit Scores
Buyers with credit scores between 620 and 740 may obtain a lower rate and lower fees than with conventional financing.
Payment History
FHA is often more lenient regarding a borrower's previous payment history. Even a past bankruptcy may not disqualify a borrower from obtaining a loan.
Seller Contribution
The seller can often contribute as much as 6 percent of the purchase price toward the buyer's closing costs, as well as prepaid taxes and insurance.
Refinancing
If an opportunity to refinance comes up, FHA allows a streamlined refinance into a new FHA loan with only minimal documentation.
Assumable Loan
When it's time to sell, buyers may assume the loan at the original interest rate provided they qualify for a new FHA loan. If interest rates rise, this can make the home more attractive to many buyers.
Call me for the names of several loan officers who can provide complete details on FHA loans, qualifying requirements and current interest rates.
In today's market, your best financing option may be an FHA loan!
However, I follow the lending situation closely since it is such an important part of the real estate business. And I've notice that FHA loans have become an increasingly important option for many buyers.
Here's an article by Mary Frances Burleson, president of Ebby Halliday, REALTORS® on this subject.
The recent tightening of mortgage lending standards makes FHA financing more attractive than ever for many buyers.
FHA is a great loan for first-time buyers, and is also a good choice for others as well. Here's why...
Low Down Payment
A down payment as low as 3.5 percent from the buyer's own funds is usually required. However, in many cases, the lender may allow the buyer's down payment to be a gift from a relative.
Modest Credit Scores
Buyers with credit scores between 620 and 740 may obtain a lower rate and lower fees than with conventional financing.
Payment History
FHA is often more lenient regarding a borrower's previous payment history. Even a past bankruptcy may not disqualify a borrower from obtaining a loan.
Seller Contribution
The seller can often contribute as much as 6 percent of the purchase price toward the buyer's closing costs, as well as prepaid taxes and insurance.
Refinancing
If an opportunity to refinance comes up, FHA allows a streamlined refinance into a new FHA loan with only minimal documentation.
Assumable Loan
When it's time to sell, buyers may assume the loan at the original interest rate provided they qualify for a new FHA loan. If interest rates rise, this can make the home more attractive to many buyers.
Call me for the names of several loan officers who can provide complete details on FHA loans, qualifying requirements and current interest rates.
In today's market, your best financing option may be an FHA loan!
Leave a comment