Greater Columbia, Chapin, Irmo, Lexington and Lake Murray.

Thursday, December 10, 2009

FHA Loans - A GREAT Financing Option for Your Home Purchase

Low home prices. Historic interest rates. Tax credits. Stimulus packages. Bailouts. There's a lot of chatter about how these factors affect the real estate market, but not enough talk about a no-brainer financing option... FHA Loans.

Key Points About FHA Loans:

  • The borrower must meet standard FHA credit qualifications (there's no set credit score barometer, but a borrower's debt-to-income ratio is heavily considered).
  • The borrower is able to finance the upfront mortgage insurance premium into the loan. The borrower will be responsible for paying an annual premium.
  • The FHA mortgage requires a low 3.5-percent down payment, and that money can come from a variety of sources, including parent gifts and HUD downpayment assistance grants.
  • Closing costs are also low - typically 3 percent of the total purchase price - and may be covered by the seller in today's market. They can also be incorporated into monthly payments.
  • Eligible properties are one-to-four unit structures, and each state has a purchase price limit (as high as $400,000) for FHA loans.
  • If a buyer finds a fixer-upper, the FHA 203(k) program can help the person purchase or refinance the property, with the cost of repairs and improvements included in the loan.
  • FHA home mortgages aren't just for first-time homebuyers. FHA refinance loans can help people get out of toxic debt situations caused by subprime mortgages with high interest rates.

CLICK for more Info: Why Should I Consider an FHA Loan

Ready to buy a home in Columbia, SC? 

Telephone: (803) 388-8011

No comments: