Little Known Facts About FHA Mortgages

Posted by Bill Ryan on Tuesday, October 8th, 2019 at 8:39am.

Little known facts about FHA mortgages

  • FHA loans are available for one to four family unit properties with one unit being owner-occupied.
  • The minimum down payment for an FHA loan is 3.5%.
  • FHA has a minimum credit score of 500 to 579 but it requires a 10% down payment.  Not all lenders are willing to make loans to borrowers with lower credit scores.
  • There is a program for a borrower to roll the cost of the repairs into the mortgage.
  • Mortgage Insurance Premium is required on all loans
  • Mortgage Insurance Premium is required for the life of the loan.
  • Refinancing an FHA loan has a simplified process of qualifying.
  • FHA loans are easier to qualify for than conventional loans.
  • Borrower needs a valid Social Security number.
  • Borrower needs to provide proof of U.S. citizenship, evidence of legal residency or eligibility to work in the U.S.
  • Borrower must be of legal age according to the state's borrowing laws.
  • Sellers can pay some of the borrower's closing costs.

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