FHA Loans Advantages of FHA for Purchases · With the current loan limits in King, Snohomish, and Pierce County you can purchase a home up to $691,000 with only 3.5% down payment. · 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.