FHA
Loans
FHA home loans are a great way for
a first time home buyer to become
a home owner.
Please see the quick facts guide
on FHA loans below..
1. The main advantage of a FHA versus
a Conventional loan is that the credit
qualifying criteria for a borrower
are not as strict as conventional
loan financing and the down payment
requirements are less.
2. When comparing a purchase money
FHA loan against a Conforming mortgage
loan, the FHA loan will generally
have the least amount of money required
to close and the lower payment.
3. FHA loans will allow the borrower
who has had a few "credit problems"
or those without a credit history
to buy a home.
4. An FHA Underwriter will require
a reasonable explanation of these
derogatory credit items, but will
approach a person's credit history
with common sense credit underwriting.
5. Most notably, borrowers with extenuating
circumstances surrounding a bankruptcy
that was discharged 2 years ago can
be approved for maximum financing.
Conventional financing, on the other
hand, would require 5 years to have
passed to be eligible for a mortgage
loan.
|
I
didn't have much money to work
with for a down payment. Nick
was able to get us an FHA mortgage
with less then the 20% down
that our bank wanted. Thanks
Nick! Steve W. Grand Haven,
MI
