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FHA Loan Benefits

posted Nov 9, 2010, 8:54 AM by Massey Kouhssari
FHA home loans allow buyers to buy a home with less than 3.5% down or up to 96.5% of the homes value.  Some highlights of the FHA loan program are:
  • Minimal Down Payment and Closing Costs.
  • Downpayment less than 3.5% of Sales Price
  • Gift for downpayment and closing costs allowed
  • No reserves required
  • 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 640
  • FHA will allow a home purchase two years after a Bankruptcy
  • FHA will allow a home purchase three years after a Foreclosure
  • FHA will allow a home purchase after a short sale (0x30 mortgage lates required) 
  • 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.
  • First Time Homebuyers are eligible