Advantages for FHA Financing
Thursday, June 24, 2010
Advantages for FHA Financing
Current loan limit for 2010: $291,250 for single family home
- Low Down Payment! Only 3.5% cash investment required by borrower.
- Upfront Mortgage Insurance Premium (UFMIP) may be financed or paid in cash by a seller.
- Gifts are permitted for entire down payment and closing costs.
- Liberal qualifying ratios. (29% to 45%)
- Seller paid contributions allowed up to 3% of sales price for closing costs, discount points, prepaid taxes & insurance and UFMIP.
- NO INCOME LIMITS!!
- No monetary reserve requirement after closing.
- An FHA purchase money mortgage combined with certain down payment assistance programs allow for limited out of pocket cash by the borrowers!!
- Liberal rules for non-occupant co-borrowers
- High LTV of 85% for cash out refinance
Information Provided by:
Natalie Pigg
American Mortgage
1575 Shiloh Rd, Suite H
652-6677
natalie.pigg@nflp.com