2008 Apr 17th
The Positives of FHA Loans Here in the Santa Barbara, Goleta and Carpinteria Areas
categories: Buyer's Resources, First-time Home Buyers
Here is a great list of positives about an FHA mortgage that I picked up from First Capital that I felt buyers should know about…
- Common sense underwriting
- Maximum loan amount $729,750
- No declining market appraisal issues. Lenders are not reducing the loan to value if a home is in a “declining market” whereas all traditional loan programs are being cut by 5% loan to value
- Buyer can put as little as 3% down of which all may be gifted
- Seller may contribute 6% credit to buyer - 3% for closing cost and 3 % for down payment
- Buyer may not need money out of pocket with some assistance programs
- An employer / parent may co-sign and qualify for the loan as a non-owner occupant co-borrower
- Flaws in credit history are allowable
- Debt to income ratio of 31% / 43% or higher
- Interest rates are generally at or below market - full documentation required for most loans
Kevin Schmidtchen - Thank you for reading. I hope you find Santa Barbara Real Estate Voice informative. Please feel free to contact me or comment below with any thoughts.
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