FHA Loan Rescue Plan

FHA Rescue Plan
FHA to insure up to $300 billion in new loans over the next four years.
Expanded alternatives available on FHA purchases and FHA refinancing.

FHA Loan Highlights
An FHA loan is a mortgage insured by the Federal Housing Administration.
Contrary to popular belief FHA loans are not just for first time home buyers.

  • Low down payments. FHA loans usually require just a three percent down payment. Down payments can also be gifted to the borrower from family members.
  • Low closing costs. FHA currently restricts the amount of origination fees to be a maximum of one percentage point. This usually means lower closing costs than a conventional mortgage.
  • Easy credit qualifying. Those with less-than-perfect credit are more easily approved for a loan through FHA programs because the federal government insures them therefore allowing the banks to lend more freely.
  • Lower overall costs. An FHA loan can have a much better interest rate, which cuts down on the overall cost of the loan.

Eligibility requirements

  • You must have a valid Social Security Number, be a legal resident of the United States.
  • You must qualify for the mortgage by checking income, assets, debt load and credit history.
  • Property must be Owner occupied
  • Typically, the only income limitation is to have enough income to afford the mortgage in addition to other debt payments.
  • There is not a minimum credit score required to qualify for an FHA loan.

Good candidates
Certain borrowers are better suited for an FHA loan than others.

  • First-time home buyers, an FHA loan may is a good choice. It can help you get a better rate than a conventional mortgage and you do not have to have a large down payment.
  • Those who can only afford a small down payment or those who were given the down payment as a gift often find an FHA loan to be a good choice. It only requires 3.5 percent down and the down payment can be a gift from a family member or other source.
  • If you have less-than-perfect credit, an FHA loan might be your best option. Because the Federal Housing Administration insures the loan, lenders can provide a loan to a borrower with poor credit without needing to charge exorbitant interest rates.

For more information on FHA loans contact Schaefer Mortgage Today!

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