From 2001 to about 2006 subprime mortgages made FHA - insured mortgages look like a relic of the past. But as we are finding out the hard way some oldies really are goodies.
Now with the death of subprime mortgages, like the extinction of dinosaurs from the ice age, FHA mortgages have once again become the mortgage of choice for the masses. Whether your a first time home buyer, have credit challenges or have limited purchase funds an FHA loan is for you!
That's because these Government Loans are the only loans that will let you put a minimum of a 3.5% down payment for FHA Loans and 100% financing for VA loans.
Conventional loans now a days require a minimum of 5% down payment and thats if you can qualify for the mortgage insurance which is supplied by a third party company.
FHA Loans are government loans, They are partially insured by the U.S. Government in case of default by the borrower.
FHA mortgages are the mortgages for today's home buyers that have less than perfect credit and little money for down payment and closing costs.
Credit scores for FHA mortgages are a moving target at this time. Minimum requirements have gone from a 580 mid score to a 620 mid score. Several lenders are raising their guidelines to a minimum credit score of 640. I can still get you qualified at a 620 credit score but it comes with a cost in the form of a higher interest rate.
The minimum down payment for an FHA loan is 3.5% down. This is far better than any other option available in today's market place. Unless you are able to put 20% down on a home purchase, an FHA mortgage is probably your best loan choice.
FHA streamline refinance If you currently have an FHA mortgage you can refinance into a lower interest rate without many of the lender requirements that could otherwise keep you from taking advantage of today's historically low interest rates by doing an FHA streamline mortgage.
By utilizing an FHA streamline refinance you are able to get a free pass on the following:
No appraisal - If you owe more than your house is worth NO PROBLEM!
Bad Credit - No PROBLEM (the only exception being no 30 day late's on your current FHA mortgage in the past 12 months).
There are closing costs involved but I can get very creative and structure your loan so that you may have NO closing costs out of pocket!
Todd Dawkins www.MortgageCreditCare.com 2424 North Federal HWY, suite #415 Boynton Beach , FL 33435 By Phone: 561-714-5541 (Office) By Fax: 561-739-8333 (Fax) By e-mail: ToddDawkins@gmail.com
