Benefits of FHA Mortgage Loans

FHA Mortgage Loans are one of the best mortgage loan programs available for folks purchasing a home in the Raleigh/ Cary Area because it serves so many needs!  They have low down payment features, common sense underwriting approvals and low mortgage rates!

Benefits of FHA Mortgage Loan Program

Minimum credit score requirements for FHA Loans for folks who have not suffered unusual circumstances during the Recession fall all the way down to 620.  For folks who suffered job loss, and other unforeseen setbacks, FHA Minimum Credit scores can go down to 580.

With a credit score below 620, expect more documentation showing why your scores are so low.

FHA Mortgage Loans have a low down payment threshold of only 3.5%.  The down payment can come from a gift, or it can come from the NCHFA Mortgage Grant Program for First Time Home Buyers, which will gift you 3% for the down payment!

When one borrower has most of the income… the other borrower has good credit scores… there ARE options for purchasing a home.  FHA Mortgage Loans offer multiple options,  the home still only requires a 3.5% down payment, and it is NOT considered investment property.

This means you can still write off the taxes and mortgage interest.

You can also use the FHA Mortgage Loan program, as a parent, to help your student or child get into their First Home! Often times, this is much cheaper than Student housing for a Graduate or Undergraduate in College.  They also allow the parent, or family member, to go on the loan to help with qualifying, as a non-owner occupying co-borrower!

The program can also be used to help an elderly parent who might have a limited income live an independent life style!

FHA Mortgage Loans also offer flexibility when it comes to new credit – meaning if you have not been in the work force for YEARS, you might not have a very high score – not because you’ve missed a payment, simply because you don’t have a really long credit history!

Borrowers who work second jobs, also find FHA is quicker to accept income from that second job – meaning sometimes only 18 or 20 months of second job income history is required!

FHA Mortgage Loans also help First Time Home Buyers qualify using the NCHFA Affordable Mortgage Options.  The State offers those who qualify Mortgage Tax Credits and 3% Grants to use for the Down payment – leaving only .5% required from the home buyers!

How to buy a FHA “Foreclosed” Home

In the past few years, FHA Foreclosed on homes in NC.  Not as may homes as they foreclosed on in other states – but still, there’s the ability to buy these previously foreclosed homes for very little cash out of pocket.

• HUD Homes with $100 Down Payments: If you are purchasing a HUD foreclosed Home, and we write it in the contract – HUD will allow you to get an FHA mortgage on that property with a $100 down payment.  HUD will also contribute to your closing costs.  The buyer must be an owner occupant to qualify, and they must offer full price.  You must be willing to live in the property for a year.  You can not combine this program with a FHA 203K.

• FHA Good Neighbor Next Door:  If you are purchasing a HUD Home in a qualifying “Revitalization” area, HUD allows Teachers, Firemen, Police Officers, and qualifying EMT’s to purchase the home at 50% of the asking price.  They must be willing to Owner Occupy the home for 3 years – and you can not own residential real estate for 12 months prior to the offer.

We’ve closed over a THOUSAND FHA mortgage loans Raleigh in our history as Loan Officers! It’s a GREAT program, with HUGE benefits!  Call Steve and Eleanor Thorne 919-649-5058 to get pre-qualified today!  We offer all First Time Home Buyer Programs!