Here are some great facts to know about a FHA loan.
FHA loans offer home buying borrowers lower down payment options and lower lending standards than conventional lenders. These are “huge attractions” to low-mid tier and first time buyers, according to Dennis Geist, the senior advisor with Treliant Risk Advisors.
Here’s how FHA mortgage loans compare with conventional loan
FHA borrowers do not need perfect credit scores. It’s always best for your clients to check their scores before they borrow. Your clients can check for no cost at myBankrate.Borrowers can use their own savings, a cash gift from a family member or a grant from a state/local government down payment assistance program to make their down payment. Remember that FHA loans with a minimum down payment of 3.5% are available for borrowers with credit scores of 580+.The FHA allows home sellers, builders, and home lender to pay some closing costs (appraisals, credit reports, title expenses) on behalf of borrowers as incentives for them to buy new homes.Since the FHA is an insurer, not a lender, borrowers must seek FHA approved lenders. Again, it’s important that borrowers shop for and compare their loan offers in order to get the best rates, even on the same loans.The FHA requires two mortgage insurance premiums. One is an upfront premium. It is 1.75% of the loan amount and can be paid either when the borrower obtains the loan or can be financed as part of the loan amount. The second mortgage insurance is the annual premium. Paid monthly, annual premiums are based upon the length of the loan, the loan amount and the initial loan-to-value (LTV) ratio.The FHA allows borrowers to borrow cash for repairs. These so-called streamlined loans, 203 (K) loans offer up to $35,00 for non-structural repairs. Loans are based upon the projected value, not the appraisal value, of the home after the repairs are completed.FHA “ceiling” and “floor” limits are based on the cost of living specific to the location of the home. Ceiling limits have been raised to $679,650 in 2018 and floor limits have been raised to $294,515 in 2018. The FHA makes exceptions for Alaska, Hawaii, Guam and the Virgin Islands due to higher construction costs.Lastly, the FHA allows financial hardship relief for its borrowers. That relief can be in the form of loan modifications, a temporary period of forbearance, an extension of the payback period or a deferral of the loan.
If this seems very overwhelming, I have a great lender I can put you in contact with,
Author:Angel Cutshall Phone: 904-237-6390 Dated: March 5th 2018 Views: 342 About Angel: ...
View our latest blog posts in your RSS reader. Click here to access.
The single most popular reason that agents choose La Rosa Realty is our unique 100% Commission structure. That is absolutely no secret, La Rosa offers the most competitive commission plan in the industry regardless of the market that you are in. We did not invent the 100% commission structure, we just recreated it to include the comprehensive tools and structure that has been vacant within the industry since its inception.
Our commission plan is very simple, straight forward and are all inclusive of all the tools offered by La Rosa Realty. Plain and simple La Rosa offers the best commission structure in the entire industry, period! Welcome to Tomorrow's Real Estate Industry today. The Market is always changing and real estate agents have been forced to change the way they conduct business. Isn’t it time to find a brokerage that is doing the same?
How To Channel Your Personality To Create The Perfect Home For YouYou'
"La Rosa Realty is hands down a rarity in the Real Estate Industry. Never have I seen such passion and strive for excellence. The Broker, Joe La Rosa, makes each and every one of his agents' success a personal goal. If you're looking for a TOP NOTCH company to either find an agent to assist with your search for that perfect home or looking for an AMAZING new environment to work in... La Rosa Realty is it!!!"