Loan Programs

FHA Loans

FHA loans are designed to help creditworthy individuals and families to buy a home for a 3.5% Minimum Required Investment, AKA 3.5% total move in. These loans are beneficial to those borrowers that wish to put a minimum amount of down payment or total cash to close into the transaction. FHA also has more flexibility in terms of borrower qualifications and seller contributions.

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Some of the advantages of the FHA loan are:

  • Low down payment (only 3.5% may be required).
  • Down payment may also be in the form of a qualified Down Payment Assistance program or bona fide gift.
  • Seller contributions are allowed up to 6%.
  • More flexible underwriting (approval).
  • Closing costs that lenders can charge are restricted. Lender Credits are not included in the seller contribution.
  • FHA loans are “assumable” to other qualified buyers.
  • FHA Refinances can be streamlined (less documentation required for approval).
  • Some closing costs may be financed (less out of pocket expenses via lender credit).
  • Some FHA loans allow for Energy Efficiency credits.
  • Some FHA loans can allocate costs for repair/upgrade within the loan.
  • The FHA loan is covered by a government loan insurance program which makes it more desirable for lenders and other institutions.

The amount of money you can borrow -- which typically determines the cost of the home you can afford -- is set by the US Government. Contact Us for more information on FHA loans.

The Federal Housing Administration (FHA) is a division of Housing and Urban Development (HUD).

 

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