FHA TO THE RESCUE

The government sponsors great mortgage programs thru the Federal Housing Administration (FHA) which are, in turn, insured by the Housing and Urban Development (HUD). What does this mean to you?-- A lower interest rate because the loan is backed by the government. Back during the Great Depression, the government felt that if they made home ownership more affordable, more people would buy thus spurring economic growth. This effect was wide reaching, not only did it help banks and builders, but it also created jobs and increased product development and upgrades in household items. Today-- like back then-- these programs can be used to help more people purchase or refinance their existing home loans at a much lower rate.

FHA can be used for a variety of situations:

• 95% cash-out refinance
• 1-4 unit owner occupied properties
• No APPRAISAL required for FHA STREAMLINES
• Credit scores as low as 600
• Allows gift funds
• May be assumable to next buyer

With the FHA loan limits at $207,050 (Marion & Hamilton counties IN.) available to home buyers and people wanting to refinance their existing mortgages, it is time to explore these programs again. 

In summary the main goal of FHA is to help people buy homes. Qualifying for a FHA loan is not as hard as one might think. The first step is to contact a FHA specialist to see if and how much you qualify for, before you shop for a house. If you are a seller you might think about advertising that you will pay the buyers closing costs instead of dropping your price.