FHA has become a very popular loan program. It is now 45% of all the loan business in the United States. It has become 80% of our business at Exchange Financial Mortgage. In recent years past FHA saw their business shrink to just 2% of all the mortgage production in the US. It looked like FHA was certain to become extinct. Conventional loans were offering 3% down even zero down loans. With the extreme tightening of the conventional loan underwriting criteria in recent months borrowers and lenders have gravitated to FHA. It is now the program of choice.
What does FHA offer? Here are the ten top reasons FHA is now the preferred program.
10. Minor REPAIRS NOT REQUIRED UNLESS HEALTH OR SAFETY ISSUES
9. MAXIMUM LOANS $271,050 for 1 UNIT HOMES
8. 100% GIFTED DOWN PAYMENT ALLOWED FROM A RELATIVE
7. 6% SELLER CONTRIBUTION ALLOWED FOR CLOSING COSTS AND ESCROW ITEMS
6. NO DOWN OPTIONS (FOR INCOME QUALIFIED MSHDA BUYERS)
5. GREAT LOW FIXED RATE
4. LOW MONTHLY MORTGAGE INSURANCE
3. NO RESERVES REQUIRED
2. LOW DOWN PAYMENT REQUIREMENTS
1. AND NO PREPAYMENT PENALTIES
FHA is also more flexible on credit than other current loan programs in the market today. FHA is still looking for borrowers with good credit but it is more forgiving of those with some spotty credit histories.
Who shouldn't use FHA? Those with a healthy down payment or those that can use a Rural Development loan.
No comments:
Post a Comment