FHA is the way

FHA is the Way.
With all the talk of tightning credit markets and tougher mortgage guidelines, who is making the mortgage market move? FHA . So who is the FHA and how does it work.

The Federal Housing Administration, generally known as "FHA", provides mortgage insurance on loans made by FHA-approved lenders throughout the United States. FHA insures mortgages on single family and multifamily homes including manufactured homes. FHA mortgage insurance provides lenders with protection against losses as the result of homeowners defaulting on their mortgage loans. The lenders bear less risk because FHA will pay a claim to the lender in the event of a homeowner's default. Loans must meet certain requirements established by FHA to qualify for insurance.
At this point in the mortgage business over 50% of all mortgages are FHA mortgages.
Why you ask?
- Higher loan limits, up to $625,500, depends on county.
- Up to 96.5% loan-to-value on purchases and refinances. 85% cash out.
- Down payment and closing costs can be gifted
- 6% seller contribution toward closing costs
- Mininum credit score 580
- Higher debt to income ratios
- Competitive interest rates
- No prepayment penalty
- Low mortgage insurance payments
This list make you ask why not FHA.
In the more than 60 years since the FHA was created, much has changed and Americans are now arguably the best housed people in the world. HUD has helped greatly with that success.
I have multiple FHA lenders to choose from, So please contact me if you have any questions or comments.
Keith Woeste
Milestone Mortgage
831-801-8667
kwoeste@milestonemtg.com