Buying or selling?...........You should know FHA!
So with the mess that the lenders got themselves into with the "mortgage boom" of years past, FHA is the new product of choice for a number of buyers. They actually fill in the gaps of where the convention financing pulled their products. So whether you are buying or selling....let me help you with the FHA loan basics. You may ask...why if I am a seller do I need to know about FHA? Because you may need to market you home to FHA buyers inorder to get a quicker sale. If your Realtor does not want to market your home with FHA terms.....you might want to have a heart to heart with them and inform them! (but shouldn't they be the ones informing you?) In the past if you went with FHA financing there were always numerous hoops to jump through...inspection requirements....apprasial issues.....delayed closings...ect. A lot has changed! They changed their requirements a few years back to be able to compete better with the other conventional lenders, but now with lenders "jumping ship" on once popular products, FHA has increased in popularity!
Here are some basics:
Low cash requirements for borrowers- The down payment and all of the closing cost on a FHA loan can be funded by a gift to the borrower or one of our down payment assistance programs. ( Ask me for more info on the assistance programs if you may be interested)
There are no income requirements for FHA loans.
You can have less than perfect credit and still be approved. They actually look at the last 12 months of you payment history...not just your credit score. So therefore you are able to still buy...even if you have a few "dings" on your credit.
A larger share of income qualifies toward the monthly payments
FHA loans are assumable (which can help market your house when you go to sell)
FHA is great for first time buyers or buyers with little or no money to put down.....But you may be surpised that even if you have great credit and money to put down, FHA may still be your best option. If you would like to know if you may qualify for FHA.....please contact me....I would be happy to help!