FHA Loan Info 1/30/2012

The FHA loan program was created to help increase home ownership. The FHA program makes buying a home easier and less expensive than other types of real estate mortgage home loan programs. Some highlights of the FHA loan program are:

• Minimal Down Payment and Closing Costs.

• Downpayment of 3.5% of Sales Price

• 100% Financing options available*
• Gift for downpayment and closing costs allowed.
• FHA regulated closing costs.
• Seller can credit up to 6% of sales price towards buyers costs.

• Easier Credit Qualifying Guidelines such as:

• Minimum FICO credit score of 620.
• FHA will allow a home purchase two years after a Bankruptcy.
• FHA will allow a home purchase three years after a Foreclosure.

• Easier Debt Ratio & Job Requirement Guidelines such as:

• Higher Debt Ratio's than other home loan programs.
• Less than two years on the job is allowed.
• Self-Employed individuals o.k.

These advantages of the FHA loan program has made it one of the best options for most first time home buyers as well as move-up home buyers.

You do not have to be a first time buyer to obtain a FHA loan, anyone may use a FHA loan as long as you do not have more than one FHA insured loan at any one time.