Last week, we started our discussion on the FHA loan, or the federal housing administration loan. There are a number of advantages of an FHA Loan that make it appealing to home buyers, especially those that may find buying a home a challenge or think they don’t have the funds or credit score etc. to do so.
One of the disadvantages of having an FHA versus a conventional loan is that with an FHA loan, a borrower needs to pay a 1.75% upfront mortgage Insurance Premium On a $200,000 house, the upfront mortgage insurance Premium alone is $3,500
Instead, lenders rely on borrowers' mortgage payment history to evaluate their ability to qualify for the loan. The FHA streamline refinance.
· Disadvantages: 1. more costly mortgage insurance (MI) than a Conventional loan, even after the recent MI reduction. 2. cannot drop the PMI on a maximum LTV loan. 3. sellers in some markets perceive FHA offers as a lesser offer.
seller concessions fha What's A Seller's Concession? – Trevor Curran – Seller's Concession: this is the process where you present an Offer to. FHA financing currently allows for up to a 6% Seller's concession for.
An FHA loan is more lenient in its credit requirements than a traditional loan, which means you will be dealing with buyers who may run into issues getting the loan finalized. FHA loans can accommodate buyers with credit scores as low as 580 with a 3.5% down payment, where a traditional loan usually requires at least a 620.
· FHA Loan Limits Remain, But Program Future in Question – The Federal Housing administration loan ceiling has gone into effect for 2007, but the director of the Single Family Ownership Center with the Department of Housing and Urban Development (HUD) is openly questioning the future viability of the program.. Other disadvantages FHA loans face against the competition: a 3% down.
Downside: Possible Disadvantages of Using an FHA Loan 1. You’ll pay a mortgage insurance premium. Two of them, actually. 2. You’ll encounter some property restrictions. 3. Some home sellers shy away from FHA loans.
Problems With FHA Loans For Home Sellers When you go to sell your home, you hope to get lots of offers on your home from well-qualified.
Fha Refi Worksheet See how your income breaks down using a budget calculator or a budgeting worksheet with pencil and paper. If this occurs, be proactive. Consider refinancing your mortgage at a lower interest rate.
Some lenders grant subprime mortgages to borrowers with low credit scores who don't usually qualify for most other home loans. These loans tend to have very.