Here's another fabulous post written by one of my favorite Mortgage Lenders, Stephanie Stringer. Stephanie has been assisting people accross Texas for over 15 Years with their Home Financing and is experienced with FHA, Conventional, Home Equity and VA Loans. *You can contact Stephanie directly at Direct: (214) 382-5632 or SStringer@mortgagexloan.com
Many Americans take advantage of FHA loans when purchasing a home. FHA loans have been around since 1934. FHA loans are mortgages issued by qualified lenders and insured by the Federal Housing Administration (FHA). With the ever changing mortgage industry, FHA loans are becoming more popular than ever. Here are a few facts you should know about FHA.
FHA Loans Are Not Only for First Time Home Buyers. FHA loans are for everyone and not just the first time home buyers. You could be on your forth home and still get a FHA loan.
FHA Loans are NOT only for the Lower Income Borrowers. FHA loans are available to all ranges of income. There are no maximum income limits when doing a FHA. Just like any mortgage loan all income documentation must be submitted for qualification purpose.
FHA Loans Are Not just for the Smaller Purchases. Depending on the area you are looking to buy, FHA loan amounts can go up to $800,000. The loan amount all depends on the county in which the buyer is looking to buy. For the loan amounts for your county you can visit the HUD website(click here) or contact your local lender for details.
FHA Loans are Usually more Affordable than Conventional Loans. Rates on FHA are typically lower than a conventional loan. Especially on the minimum down payment of 3.500% loans. If you compared the two types of loans with the lower down payment, FHA will always have the better rate between the two. In today's market, rates are tiered based on loan product, down payment, and credit scores.
FHA Loans Are Assumable. FHA Loans are assumable and Conventional Loans are NOT! What this means is when a seller with an FHA loan sells his or her property, the loan and it's RATE can be transferred to the new buyer. Of course the potential buyer must meet the lenders credit criteria. Having an Assumable rate when you go sell the property is BIG Selling Tool. Your listing agent will promote in MLS that you have an Assumable loan which means that your property will be more valuable in time when rates rise. Example, if your current FHA loan is at 4.000% and you go sell five years from now and the rate is 10.000% as long as the potential buyer meets lenders requirements the buyers get that rate. This would for sure make your house more marketable than the one down the street.
As you can tell from the Five Items listed above, FHA Mortgages can be Attractive to ALL buyers.
