BENEFITS OF AN FHA MORTGAGE
 December 5 2016     Posted by Ryan Meyer

An FHA mortgage is a great option for a lot of first time home buyers. FHA (Federal Housing Administration) is a government insured loan issued by HUD. Not only is this a great product for firs time home buyers, it's a great option for buyers looking for a low down payment mortgage. Here are some of the other benefits of an FHA mortgage - 

3.5% down payment...compared to a traditional Conventional loan that would require 5% down.

Gift Funds...the down payment can be 'gifted' to the buyer from a family member or an employer.

FHA allows up to a 6% seller credit...the seller can contribute up to 6% of the sales price to go towards your closing cost. This can allow a borrower to get into the home with just the down payment. 

Non-occupying co-borrowers....this can be a parent or another relative that will not be living in the house with you but you can use their credit and income to lower your DTI (debt to income) ratios allowing you to qualify. 

Higher Debt-to-Income Ratios...compared to a Conventional mortgage that will usually cap you at a 45% DTI, FHA will go up to 55% allowing you to purchase more home. 

Lower credit scores to qualify...we like to see at least a 620, but we have lenders that will allow down to a 580 credit score.

These are just some of the benefits of an FHA mortgage. If you'd like to know more or get pre-qualified, call me TODAY at (239)910-4980

and remember, PURCHASE OR REFI...CALL RY, THE MORTGAGE GUY!