FHA Loans back in style for “Credit challenged Borrowers” & high LTV financing

Dec
22

FHA Loans back in style for “Credit challenged Borrowers” & high LTV financing

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FHA Loans back in style for “Credit challenged Borrowers” & high LTV financing

With Subprime Lenders options now more limited some are rediscovering FHA loans are the only way to get approved for a Florida FHA Mortgage. Here’s why:

PROS:

Better pricing and lower interest rates than most subprime programs
Virtually NO FICO or Credit score Requirement
Only 3% down for 1-4 units (O/O – required)
Down payment can be gifted from seller to approved not for profit payable to buyer @ close
Sellers may directly contribute up to 6% closing costs & ppd interest – (not down payment)
Rental income payments valued @ 85% – (10% more than most cov financing)
Cash Out Refinance up to 95% LTV
Rate & Term Refinance up to 97.75% LTV
No Income Cap
No Cash Reserves Required
DTI borrowing ratios up to 31/43% – manual underwriting can exceed w/compensating factors
No Prepayment Penalties
Non-occupying co-borrower income allowed
Permanent disability income allowed

FHA loan Advantages Include:

Minimal Down Payment and Closing Costs.

Down payment less than 3.5% of Sales Price
Gift for down payment and closing costs allowed.
No reserves or 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 540.
FHA will allow a home purchase 2 years after a Bankruptcy.
FHA will allow a home purchase 3 years after a Foreclosure.

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.

Apply now at http://www.fhamortgagefhalon.com/

CONS:

Full Doc Program – Income must be verifiable
Lending limits vary by county & lower than (some) other options – see below.
Requires lump mortgage insurance Premium (MIP) payable @ close.
Property tax escrows required on all loans – no waivers
Must use FHA approved appraiser

http://www.fhamortgageprograms.com/florida/N-Miami-Beach/
http://www.fhamortgageprograms.com/florida/Naples/
http://www.fhamortgagefhalon.com/
http://www.FLoridamortgagehome.com
http://www.fhamortgageprograms.com/

Article Source:http://www.articlesbase.com/mortgage-articles/fha-loans-back-in-style-for-credit-challenged-borrowers-high-ltv-financing-1609710.html

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Tags:75 Ltv,Cash Reserves,Co Borrower,Cov,Debt Ratio,Disability Income,Doc Program,Easier Debt,Fha Loan,Fha Loans,Fha Mortgage,Fico Credit Score,Fico Score,Home Loan Programs,Income Cap,Income Payments,Mortgage Insurance Premium,Ppd,Prepayment Penalties,Subprime Lenders

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FHA Loans back in style for “Credit challenged Borrowers” & high LTV financing

FHA Loans back in style for “Credit challenged Borrowers” & high LTV financing

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