The Positives of FHA Loans Here in the Santa Barbara, Goleta and Carpinteria Areas

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

Further Reading: Is My Realtor a Santa Barbara Neighborhood Specialist in My Area?, Search the Santa Barbara, Goleta, Montecito CA MLS for Free, My Home has Declined in Value...Can My Property Taxes Be Lowered?, Plan For Your Santa Barbara Remodel Now, So You Don't Go Crazy Later, The 2 Major First Steps in Buying a Home in Santa Barbara CA., Little Known Advantages of Blogging Realtors...Santa Barbara and Montecito CA. For information on Real Estate here in Santa Barbara, Montecito and/or our surrounding areas, as well as any other aspects of life in our area, please don’t hesitate to contact Kevin Schmidtchen at Sotheby’s Int’l Realty. 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. Subscribe to Receive Personal Listings of Santa Barbara Area Properties Search the Santa Barbara Area MLS

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