Advantages of FHA for Purchases
· Seller can contribute up to 6% towards buyers closing costs and prepaid items
· All down payment and closing costs can be gifted from a family member
· FHA allows a relative to cosign
Advantages of FHA for Refinances
· FHA Streamline refinances. This is Special Refinance Program for those that currently have an FHA loan with lower closing cost and no appraisal required
· Only requires 3.5% equity
· You can pay off a 2nd mortgage used to purchase the property up to 96.5% of your homes appraised value
· You can take cash out to 85% of your home’s value
General FHA Advantages
· More Flexible guidelines on Credit score and history.
· FHA loans are assumable so when you decide to sell your home if market rates are higher this can be an excellent selling feature of your home.
· FHA has excellent 5 Year Arm Program
*Underwriting guidelines subject to change daily, credit qualification, and conditions.