10. You Can’t Make Too Much Money to Take Out An FHA Loan
FHA Loans are designed for low- to moderate-income families, but there is no upper limit on income for FHA borrowers.
9. Before Sub-Prime Came Along FHA Was a No-Brainer for First-Time Homebuyers
Back in 1995 FHA counted for about 11% of the mortgage market, but when sub-prime came along everything changed. By 2004 FHA’s share had shrunk to a mere 3.3%.
8. FHA is on the Way Up
FHA Loan applications are skyrocketing in comparison with recent years. In the month of August this year FHA applications had risen over 20% from August 2006.
7. An FHA Loan Can Be Used to Make Your Home More Energy Efficient
An Energy Efficient Mortgage (EEM) can be packaged into your FHA loan for up to 5% of your property’s value (not to exceed $8,000) or $4,000.
6. An FHA Refinance Can Save You from Sub-Prime
FHASecure, the new program to help out troubled sub-prime borrowers, will allow qualified borrowers to refinance to an FHA Loan.
5. The FHA Offers Reverse Mortgages
With an FHA Reverse Mortgage seniors who own their home can receive monthly payments based on their home’s value, and they do not have to pay anything back as long as they live in the home.
4. Safer Adjustable-Rate Mortgages Available from the FHA
Although adjustable-rate mortgages are the cause of today’s sub-prime woes, not all adjustable-rate loans are bad. The FHA has an adjustable-rate mortgage (ARM) with annual and life-of-loan caps that lower the risk of taking out an ARM.
3. The FHA Finances More than Single-Family Homes
There are FHA programs for multifamily housing and even a special program for providing loans to hospitals.
2. FHA is Stepping into the 21st Century
After years of complaints about the FHA’s failure to modernize, current legislation will lower FHA down payment requirements and raise FHA loan limits.
1. You Can Take Out an FHA Loan with Less-Than-Perfect Credit or No Credit
The reason that FHA Loans have been a long-time success and are great for first-time homebuyers is that your credit score does not determine your eligibility. Other factors, such as income, employment, and utility payments, are used to qualify applicants for FHA loans.
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