FHA loans have been around for a long time, but during the current market turmoil it is proving to be an increasingly better option for home buyers and owners looking to refinance. In fact, with some of the recent loan requirement modifications, these affordable loans may make sense now more than ever.
6 reasons why an FHA loan is ideal for today's home buyer
- Low Down Payment: FHA loans require as little as a 3.5% down payment. The entire amount may come from a family member, employer or charitable organization.
- Easier to Qualify: Since FHA provides the mortgage insurance for FHA loans; there are less restrictive guidelines than may be available for conventional loans.
- Less than Perfect Credit Qualification: Borrowers with credit problems, such as bankruptcy, have an easier time qualifying for an FHA loan than a conventional loan.
- No Income Caps: There are no maximum income requirements or geographic restriction for FHA loans.
- Financed Mortgage Insurance: Because the FHA charges mortgage insurance up-front (UFMIP); borrowers are able to finance this into the cost of their loan. There is still a monthly portion, but it is generally lower cost than private mortgage insurance.
- No Prepayment Penalty: With an FHA loan, borrowers may prepay their loan without the worry of a costly prepayment penalty.
Although many lenders have just started working with government programs, VanDyk Mortgage is a Full Eagle Direct Endorsement FHA Lender with over 20 years of experience with the FHA, VA and USDA programs. To find out more about FHA loan options, contact us now.
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Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage in Cary, NC
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/
Our branch specializes in affordable lending options including FHA / VA and the Community Heros program. As both a banker and a broker, you have access to a full menu of products including all Fannie Mae and Freddie Mac Conforming loans, Reverse, Jumbo and Commercial financing on a variety of property types. We are located in Cary, North Carolina and are within easy reach of the entire RTP Area including Wake, Durham and Orange Counties.
Hi Roland,
Great post on the simplicity of qualifying for FHA loans. It is good to debunk the Myths surrounding FHA loans, and to show how FHA loans really do meet more families needs for buying and refinancing than urban legend would suggest.
Brian Skaar
http://activerain.com/blogs/bskaar