Benefits of FHA

The are many advantages to providing an FHA solution to a borrower.

These include:

• Lower down payment (1.25% to 2.75%). The lower down payment requires a minimum cash investment of 3% which may be a combination of down payment and borrower paid closing costs.
• FHA loans are not credit score driven - There is NO minimum FICO score requirement.
• Seller may pay ALL of buyers closing costs, or the closing costs may be paid by the lender through "premium pricing."
• Seller financing concessions and contributions are allowed up to 6% of the sales price.
• Cash reserves are NOT required - The only exception is for 3-4 unit properties where 3 months PITI is required.
• Gift Funds - All funds can come through gift.
• Loans are assumable to a qualified individual. FHA loans are assumable with a credit review and approval of prospective buyer .
• Down Payment Assistance Programs are available.
• There is no pre-payment penalty.
• Citizenship not required.
• There is an allowance for non-occupying co-borrowers.
• Upfront MIP may be financed.
• Borrower may be eligible for a "streamline refinance" to reduce rate and payment on owner occupied and non-owner occupied loans.