Credit Crunch No Sweat. FHA Is The Way To Go

FHA was established in 1934 and is a part of the US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD). A loan can be Conventional, FHA or VA.
Meaning who is insuring the loan. Conventional loans are insured by PMI (private mi companies), FHA is insured by HUD, VA loans are insured by the Veterans Administration.

FHA was established to make home purchasing easier to qualify than conventional. FHA ARE FULL DOCUMENTATIN LOANS. With the changing in underwriting for Subprime Loans, FHA is a valuable option.
For the following reasons:
. 1. FHA loans are not FICO DRIVEN. The client can have a FICO score under 600, or no score or no credit.
2. FHA loans allow down payment assistance from other programs as seconds
3. FHA has a 3% down requirement (REGARDLES IF IT IS 1 – 4 UNIT BLDG)
4. You do not have to be A FIRST TIME BUYER, If you own 3 units, you can purchase a SFR
5. No counseling required, No Income Restrictions, No Property Location Restrictions
6. The entire down can be a GIFT
7. Seller can pay of to 6% of ALL CLOSING COSTS INCLUDING TAXES, INSURANCE OR INTEREST
8. FHA ALLOWS UP TO 85% LTV CASH OUT ON REFINANCES AND 100% ON NO CASH OUT
9. FHA allows clients to buy if it has been 3 years since a Foreclosure, and 2 years since a chapter 7 and 1 yr while in a chapter 13 (if all payments were made on time)
10. FHA allows a STREAMLINE REFI, for existing FHA borrowers, low costs,
No appraisal, No Proof of Income only Mortgage Rating, No Cash Out, No Credit Check


FHA LIMITS as of September, 07 (SUBJECT TO INCREASE SHORTLY))

Los Angeles, Long beach, Glendale One Family $362,790, Two Family $464,449
Three Family $561,441 and Four Family $697,696 (Orange and Riverside Counties will be different)

The limits change throughout the US.

**THE SELLER IS NOT REQUIRED TO PAY BUYER FEES, FHA CHARGES A 1.5% UPFRONT MIP WHICH WILL BE FINANCED IN THE LOAN AND A PORTION REFUNDED UPON THE REFINANCE OR SALE OF PROPERTY.
NO PREPAYMENT PENALTY (WHEN THE LOAN IS PAID OFF FHA WILL CHARGE INTEREST TO THE END OF THE MONTH).



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