FHA Loans back in style for “Credit challenged Borrowers” & high LTV financing

Written By: admin on January 15, 2010 No Comment

With Subprime Lenders options now more limited some are rediscovering FHA loans are the only way to get approved for a Florida FHA Mortgage. Here’s why:

PROS:

Better pricing and lower interest rates than most subprime programs Virtually NO FICO or Credit score Requirement Only 3% down for 1-4 units (O/O – required) Down payment can be gifted from seller to approved not for profit payable to buyer @ close Sellers may directly contribute up to 6% closing costs & ppd interest – (not down payment) Rental income payments valued @ 85% – (10% more than most cov financing) Cash Out Refinance up to 95% LTV Rate & Term Refinance up to 97.75% LTV No Income Cap No Cash Reserves Required DTI borrowing ratios up to 31/43% – manual underwriting can exceed w/compensating factors No Prepayment Penalties Non-occupying co-borrower income allowed Permanent disability income allowed

FHA loan Advantages Include:

Minimal Down Payment and Closing Costs.

Down payment less than 3.5% of Sales Price Gift for down payment and closing costs allowed. No reserves or required. FHA regulated closing costs. Seller can credit up to 6% of sales price towards buyers costs.

Simpler Credit Qualifying Guidelines such as:

Minimum FICO credit score of 540. FHA will allow a home buy 2 years after a Bankruptcy. FHA will allow a home buy 3 years after a Foreclosure.

Simpler 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.

Apply now at http://www.fhamortgagefhalon.com/

CONS:

Full Doc Program – Income must be verifiable Lending limits vary by county & lower than (some) other options – see below. Requires lump mortgage insurance Premium (MIP) payable @ close. Property tax escrows required on all loans – no waivers Must use FHA approved appraiser

http://www.fhamortgageprograms.com/florida/N-Miami-Beach/
http://www.fhamortgageprograms.com/florida/Naples/
http://www.fhamortgagefhalon.com/
http://www.FLoridamortgagehome.com
http://www.fhamortgageprograms.com/