FHA MORTGAGE BENEFITS TO HELP HOME BUYERS
1. FHA Mortgages Have The Lowest Down Payment – FHA Mortgage Loans only require a 3.5% down payment. And what makes that even more attractive is that it can be a gift from a relative. Do you have a parent or sibling who would “Gift” you some money for a down payment? If so, it could be time to apply for an FHA Mortgage Loan.
2.The Most Flexible Credit Qualifying – HUD/FHA did NOT set a credit score requirement for qualifying for an FHA Mortgage Loan. However, many FHA mortgage lenders in the market today have drafted “Overlays” that set minimum credit score requirements. Most FHA mortgage lenders like to see a minimum 580 credit score, but don’t get discouraged if you are not there yet. If you are close to 580, it is often just as simple as reviewing your credit to determine how to quickly raise it. If you are not close to 580, ask your FHA Mortgage Loan Originator if they have a program for you. Chances are, there is! Bankruptcies and prior foreclosures do not automatically disqualifyyou’re your for an FHA mortgage either.
3.The Seller Can Pay Your FHA Mortgage Closing Costs – That’s right. You need to have a quality Realtor who will help you negotiate not only the best price for the home, but also that the seller will pay your closing costs. HUD allows FHA Mortgage Loans to have the seller pay up to 6% of the purchase price. Sounds good so far, a down payment gift and seller paying closing costs!
4.FHA Mortgage Loans Allow Flexible Income Qualifying – The standard for income qualifying ratios is 31/43 which means that up to 31% of your monthly income can be used to pay your monthly household mortgage payment; and up to 43% of your monthly income can be used to qualify for ALL monthly expenses. Those ratios can go up to 55% if you have good credit and a good income history allowing you to qualify when others might not.
5.FHA Mortgage Allows Qualifying Without Your Spouse’s BAD Credit – This is a tricky one but it is also not well known. You can effectively qualify for an FHA Mortgage Loan without your spouse’s Bad Credit. FHA will look at your spouse’s credit but cannot decline your loan due to your spouse’s debt or credit score. So if you have1. Low Down Payment – FHA Mortgage Loans only require a 3.5% down payment. And what makes that even more attractive is that it can be a gift from a relative. Do you have a parent or sibling who would “Gift” you some money for a down payment? If so, it could be time to apply for an FHA Mortgage Loan.
6.FHA Mortgage Allows No Credit Score Home Loans!- Unlike another mortgage program FHA mortgage applicants can use rental history + 3 verified payment histories from direct service providers to qualify for an FHA mortgage.
