Advantages of a FHA Loan

§  Low Down Payment (currently 3% can be 100% gift) and lower rates in your credit score is below 720 (FHA PMI rates lower than conventional)

           §  Seller concessions or contributions up to to 6% of price 

§  Many perceived “sub-prime” borrowers can obtain "A" credit interest rates using FHA (minn. score 620 most lenders)

§  Seller can pay all of buyer’s Closing Costs and Prepaids up to 6% of sales price

§  Loans available for one to four family units

§  Cash Reserves are NOT Required (Exception: 3 & 4-units…3-mo. PITI needed)

§  Gifted Funds allowed to 100% of Buyer’s  required investment

§  Flexible Qualifying Ratios starting at 31%/43%

§  Flexible “Common Sense” Credit Guidelines

§  Non-Occupying Co-Borrowers Allowed

§  Cash out refinance up to 95% LTV

§  FHA 203k Streamline offers easy rehab funds up to $35,000.00…no consultant required

§  No Pre-payment Penalty

§  Seconds May Be Obtained From A Family Member

§  FHA Loans Are Assumable (After 12-15-89 qualifying required)

§  Lawful Permanent Resident Aliens and Non-Permanent Resident Aliens can obtain an FHA loan.