If you are a first-time buyer or a
purchaser a with less than perfect credit score, then look into the Federal
Housing Administration home
loan program.
FHA does not normally make direct loans, but insures loans created by banks and mortgage lenders. Not that long ago, in the olden times (5 years ago) of no-money-down mortgages, stated income loans (liar
loans) borrowers avoided FHA insured loans because of the 3% of the total
purchase amount minimum
down payment.
However most lenders are now requiring a down payment of 15% to 20% -- an terribly high amount for the majority first-time buyers -- all of a sudden,
FHA loans have come into vogue.
Furthermore, it's workable to qualify to obtain an FHA insured loan in spite of a poor
credit score due to a prior home foreclosure, late loan payments, or even filing a bankruptcy. Even though the FHA requires every prospective borrower to comply with minimum financial stability standards, it strives to help home purchasers that private lenders are avoiding.
There are additional costs involved with FHA's
mortgage insurance.
Presently, borrowers must pay a fee upfront of 2.25% of the loan amount and in addition an annual charge of 0.55%.
FHA loans rates may vary depending upon the lender plus dollar limits exist. To find the maximum loan amount FHA will insure in your particular geographical area, log on to
www.hud.gov to find "FHA Mortgage Limits"
Or call Gene Wright at 209-951-7521 for the names of local lenders involved in FHA Loans
Jan 14, 2011
The Following Books are an Excellent Source For Buying Real Estate
Jan 14, 2011