Health & Fitness
Top 5 Reasons South Windsor Home Buyers Need To Consider FHA Loans
Often thought of as just a loan for first time buyers, FHA loans can be great options for many buyers in South Windsor. What are the top 5 reasons why?
Often thought of as just a loan for first time home buyers, FHA loans make a great option for many home buyers in South Windsor. You do not even need to be a first time buyer to be eligible. So what are my 5 favorite reasons to like FHA loans?
1. Home buyers can generally buy with less down payment. Most home buyers can put as little as 3.5% of their purchase price down with an FHA loan.
2. Credit. While in the mortgage world of 2012 you need better credit than in years past, FHA has more forgiving guidelines on bankruptcy, short sales, and even late payments than conventional loans do.
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3. Gifts for down payment. Borrowers have been receiving money for down payments for ages. FHA allows all of the down payment to come from a gift, conventional loans guidelines say the borrower needs to have 5% of the purchase price of their own unless the gift is 20% of the purchase price.
4. Co-borrowers. FHA allows someone to co-sign with the borrower even if they are not going to live with them. Often a buyer needs a little help to get the transaction to work and the "non-occupant co-borrower" is what can make it work. An example of this, mom and dad co-sign on a house for Junior who lives in it while attending college.
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5. Property Condition Requirements. Sometimes referred to as "lender required repairs". FHA has a few requirements that every property must meet for the borrower to be able to get an FHA insured mortgage against it. No chipping paint, no broken windows, hot and cold running water, and so on. The property does not need to be straight out of a Pottery Barn catalog, but it needs to be safe for the borrower. This makes sure the buyer has a safe home at the time of closing.
With a median list price according to Zillow recently of $234,500 South Windsor could be considered "affordable" but many buyers lack enough of a down payment, or the credit required by a conventional loan. FHA loans can be a great option to consider for a home buyer in South Windsor.
If you have any questions about FHA loans, please feel free to contact me at 860-306-8029, or visit www.4fhaloan.com
