Considering a home purchase?
FHA mortgages are very popular in this current market and for good reason. We’ve represented many Tampa home buyers recently who have taken advantage of the FHA mortgage to buy a new home, whether first time buyers or experienced home buyers.
What are the advantages of an FHA mortgage loan?
FHA offers low down payment options, eligibility with less than perfect credit, a loan at a reasonable cost, and help if there is ever trouble making the mortgage payment. Because an FHA mortgage insures the lender against loss, an FHA mortgage typically has an interest rate that is competitive with the best in this market. FHA not only helps people buy a home, but helps them keep it as well. In return for protecting lenders against loss, FHA requires financial institutions to offer assistance to borrowers experiencing difficulty making mortgage payments.
But are you eligible?
In order to be eligible for an FHA-insured mortgage, a borrower must:
• Occupy the property as the principal residence;
• Possess a valid Social Security Number;
• Have a two-year employment history;
• School and military service count towards this
two-year requirement.
• Not be delinquent on any Federal debt such as a student
loan or other FHA-insured mortgage; and
• Meet flexible credit requirements.
But FHA loans had (and still have) a reputation of being difficult to work around for both buyers and sellers. But recent changes have resolved most of those objections:
FHA no longer limits what closing costs the homebuyer is permitted to pay. Sellers formerly had to pay some additional closing costs that FHA would not allow the buyer to pay.
FHA has eliminated unnecessary requirements to make minor repairs. Another headache for sellers that has been resolved.
The buyer’s entire cash investment—as little as 3.5%—can be a gift from a family member, employer, charitable organization or local government entity.
The seller can contribute up to six percent of the home’s price toward the buyer’s closing costs. Lots can be done with 6%! (interest rate buy-down, pre-paid interest on the loan, etc.)
So you can see why these loans are once again so popular.
Considering a home purchase? Contact us and we’ll put you in touch with one of our FHA loan contacts to see if you qualify, and if so, for what loan amount.
Sellers: Buyers are shopping homes that offer FHA financing. Make sure your property is marketed with that in mind. Looking to sell?
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