FHA-Insured Mortgage. In this type of loan, the Federal Government insures the lender against loss in case the home buyer defaults on the loan. This program was set up so that Americans who can't afford the 10 percent to 20 percent down payment required by most lenders can still buy a home. Many HUD Homes can be bought with FHA-insured mortgages, which allow you to purchase the home with a low down payment. You do not have to be a first-time buyer in order to qualify for an FHA loan.
HUD BRINGS UP-FRONT COSTS DOWN. The costs of buying a home are more than just the price you agree to pay for it. Before you move in, you'll have to pay various charges, which we explain below. The good news is, with HUD Homes these costs may be lower than they are with other homes.
DOWN PAYMENT. Most people know that a down payment is a percentage of the price of the home that must be paid up front, in cash. The typical downpayment is three percent and family members may give a gift to make up the balance of the downpayment.
Here are answers from two lenders we trust:
The internet is the best source:http://www.myfha.net/http://www.myfha.net/FHAguidelines/credit.html
It is not that hard to figure, it is just like any high loan-to-value conventional loan, except there is always mortgage insurance (even if youuse a second trust or have 20% down).It is also good to know that it is a pretty liberal loan, as far asunderwriting, debt ratios, gift money, credit scores, etc.Another thing to remember is that the loan amounts are somewhat limited.
You can go to my website and to figure out the maximum loan amount:http://www.getloans.com/loanprograms/fha/
Brian Martucci-Loan Officer
Nationwide Home Mortgage, Inc.
my website: www.getloans.com
meet me: www.getloans.com/introcommercial
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I found this website that has a lot of good info on it.http://www.fha.com/important_facts.cfm
Patrick A. Collins
Apply online at www.PatrickACollins.net