|
 |
  FHA Home Mortgage Loan Information for SpokaneFHA loans are home mortgage loans that are insured by the Federal Housing Authority (FHA) department of the Federal Government. FHA loan insurance protects the FHA loan lender from losses suffered if the home goes into foreclosure. FHA loans allow a buyer to purchase a home with as little as 2.25% down. FHA loans tend to be more lenient in qualifying.
Call American Brokerage at 800-874-8760 or apply on line with our quick, secure application and get an answer on your FHA Home Loan in Spokane the same day!
FHA loans do not have specific credit score requirements. Although a high credit score may assist in getting the mortgage approved, a low score is not automatically cause for denial for an FHA loan.
FHA financing tends to be more flexible than Conventional financing in the money needed to purchase the home. In an FHA loan, the customer must put at least 3% of the sales price into the transaction. Some of this money may be used for down payment and the rest for closing costs. The total cost to close on an FHA Loan is commonly over 3%. With down payment, closing costs, money to establish escrows for taxes and insurance plus interest to finish out the month of closing, the total costs can be closer to 6 or 8% of the sales price.
FHA allows the borrower to get the funds necessary to close from several sources. They include such areas as personal savings, gifts, grants, loans from retirement accounts and seller contributions.
Certain sources of money, such as unsecured loans, are unacceptable for FHA financing. Check with your loan officer to find out the best way to come up with the money needed to close on the loan. If you are having difficulty qualifying for the FHA loan size that you want, you may need a co-borrower. FHA has one of the best low down payment co-borrower programs available. FHA simply adds that income from all of the borrowers and the bills for all the borrowers and makes the decision based on the total numbers. FHA requires the payment of Mortgage Insurance Premium (MIP) to help offset the losses that FHA incurs when insuring mortgages. The premiums for the MIP are paid for by the borrower. One of the rarely mentioned advantages of FHA financing is the fact that they are assumable loans. FHA allows a new purchaser to assume the remaining term of the original FHA loan. If the rates have gone up since the original FHA loan was taken out, this can be very attractive for a purchaser. The new purchaser must qualify to assume the FHA loan. Once they have done that and the lender has formally transferred the loan into the new purchaser's name, the original borrower is no longer liable for that loan.
Call American Brokerage at 800-874-8760 or apply on line with our quick, secure application and get an answer on your FHA Home Loan in Spokane the same day!
|
|
Copyright (c) 2004 American Brokerage. All rights reserved