Over the lat few months mortgage products have been deleted on a daily basis – but FHA is getting new features and really “beefing up” their presence! Today, FHA loans are the “Loans of Choice” for most first time homebuyers!
WHY?!?
FHA does not make loans or guaranteed loans. It insures loans. The insurance removes or minimizes the default risk lenders face when buyers put down less than 20 percent. Because of this – lenders are more willing to make FHA loans.
FHA recently increased the loan limits for most of the country. In Cary, NC the maximum FHA loan is $295000. This will buy a home home of about $306,000!
If your credit is less than perfect, FHA is more tolerent and might be the right program. Fannie Mae and Freddie Mac recently changed their guidelines and folks with a score less than 680 will have a difficult time purchasing a home! FHA loans need a minimum score of at least 620, and, if you qualify for NCHFA, they might be able to approve you for a loan with a credit score a little lower!.
Unlike Subprime loans – FHA rates and terms are very competitive! They generally not as low as a 30 year fixed rate Conventional loan – but they are not SUBSTANTIALLY (less than a percent of interest) from those rates!
And last – but not least…. FHA loans have a low required Investment of 3.5% – which can be a gift!!
If you have more questions about FHA loans, contact Steve or Eleanor Thorne, the Government Loan Experts at Connect With Us on Facebook in Raleigh, NC, 919-649-5058 We offer today’s best mortgage rates in Cary!
http://www.stevethorneonline.com
About Eleanor
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