Will FHA save the day?

A few years back, FHA loans accounted for 3% of transactions. Yesterday, my title guy said he's seeing FHA accounting for almost 70% of the transactions in the last few months. Dang!

What is FHA?

*Federal Housing Administration - Government program created to foster homeownership.
*FHA's allows individuals to qualify who have been previously denied for a home loan by conventional underwriting guidelines
*FHA insures mortgage loans in case of default
Why is FHA so popular? Well, let me tell you!
FHA rates are generally .25 to .375% lower than conventional mortgage rates!
Mortgage Insurance is only around 1/2 the monthly fee as private mortgage insurance with conventional loans.
FHA is not credit driven! With a conventional loan and bad credit, your rate is going to be sky high! FHA doesn't alter their rates like conventional does.
Get an FHA loan with a 580 FICO score!
FHA goes to high LTV's (97%) and works with most down payment assistance programs.
It is very easy to structure 100% financing and true no-money-down deals with FHA.
FHA allows for unlimited gift funds from family, employers, non-profits, churches, etc.
FHA allows for more flexibility with underwriting guidelines. I just has a borrower approved at a 59% back end DTI!
FHA is not affected by declining market policies.
FHA works with most down payment assistance programs: seller funded (i.e., Nehemiah), state/federal, local/county/city, and other nonprofits!

Did you know that the seller, builer, real estate agent can contribute up to 6% towards closing costs & prepaids?!

Did you know that they can also contribute up to 3% towards down payment assistance?!
This totals 9% concessions!

Creative Marketing for Listings
DON'T lower your sales price - offer incentives!

◦Seller to contribute down payment and closing costs
◦Prepay HOA
◦Buy down Interest Rate

"Buy this house with no money down!" [Yes, you can structure deals so the borrower gets their earnest money back at closing.]

Written by:

Greg Vogel

Company
The Financing Group Wellness Credit ICOR
E-mail
Contact Greg Vogel (The Financing Group Wellness Credit ICOR)
Website
http://www.thefinancinggroup.com www.mywellnesscredit.com www.icorockies.com
Office Phone
(970) 449-4304
Cell Phone
(970) 420-7832
Alt. Phone
(970) 223-5369
Fax
(970) 692-8371
Address
1200 South College Ave., Suite 102, Fort Collins, CO, 80524