It seems kind of silly to have to ask the question, "is that a bedroom?" when you see what obviously looks like one. Our friend, you might just be surprised that what you see might NOT be a bedroom
The 80 Year Old FHA Loan Is Still In Demand
FHA mortgages were created to help home buyers facing specific challenges, and in spite of other loan programs that have better options in some cases, the FHA Mortgage Loan remains the most popular loan in home lending today. Other loan types, such as the HomeReady mortgage, require a smaller downpayment. And USDA home loans come with lower mortgage insurance. But there’s a reason FHA has been around more than eighty years.
Perhaps one of the most attracting features of the FHA mortgage is it's flexibility on credit scores and it's availability to buyers with lower incomes. FHA mortgages are the U.S. government’s tool to promote homeownership, especially among those who can’t qualify for other loan types. With FHA, buyers can put down 3.5% of the loan value if they have a credit score over 580, which equals $3,500 per each one hundred thousand dollars in loan amount. Fannie Mae’s HomeReadyTM program requires only three percent down, and USDA and VA home loans require zero down payment, however, not everyone is eligible for these specialized loan programs. VA loans, backed by the Department of Veterans Affairs (VA), require applicants to serve in the U.S. Armed Forces. Likewise, USDA loans are somewhat restrictive in that the property must be located in a USDA-eligible area. The HomeReadyTM buyers must fall within designated income limits, or purchase a home within under-served communities. FHA has no income eligibility restrictions and are not limited to first-time buyers or certain geographical areas.
High credit scores are great, if you have them but applicants with credit mistakes in their past can often purchase a home before they have fully restored their credit. The FHA loan allows for very low credit scores. About 37 percent of FHA approvals fell into the 650-699 credit score range according to Ellie Mae. Another 24 percent of applicants had a score between 600 and 649.
Wondering if you would qualify for an FHA loan? Call us! We have trusted lenders that we can refer you to that will be glad to sit down and talk with you about your needs in a lending scenario. We're in the office daily inside Keller Williams Realty at 1033 Hamilton Place in Johnson City, or, if you'd just like to get a consultation by phone, call our office at(423) 433-6517. Either way, we would love to work with you to find the best solution to get you into YOUR new home!
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Wes Shields, Team Owner and Listing Agent for The Shields Team at Keller Williams Realty of Johnson City Tennessee, has a long and very impressive list of accomplishments in his 10+ years in the real ....
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You've become obsessed with your credit score, guarding it carefully, and keeping a close eye on it to have everything in order when you apply for a home loan. That score will will not only affect