July 22, 2024

FHA Purchasers Immediately Have Negative Equity – The Buying Dilemma

Most first time home buyers who have done their homework know that there are both benefits and disadvantages associated with FHA mortgage financing. Real estate agents and the mortgage industry will typically stress the benefits of a low down payment requirement and flexible underwriting standards with FHA financing.  However, there are also disadvantages associated with […]

Do FHA Low Down Payment Loans Make Financial Sense?

Home ownership rightfully remains the goal of many Americans and a plethora of government loan programs run by agencies such as the  FHA, VA and USDA all provide mortgage programs with little or no down payment requirements. Before buying that dream home, however, a borrower should analyze whether or not it makes financial sense to […]

Sometimes, FHA Financing Is Not The Best Option For Homeowners

FHA mortgage financing offers the benefits of low interest rates, relatively liberal underwriting guidelines and low down payment requirements.  Sometimes, however, FHA financing is not the best option for a home buyer. One of the biggest drawbacks to FHA financing is the expensive mortgage insurance charged to borrowers.  In addition to being charged an upfront […]

Most FHA Mortgage Downpayments Come From One Source

For most borrowers, the hardest part on the path to home ownership is being able to save the required downpayment.  In addition to the basic downpayment, a borrower also needs funds for a home inspections, an appraisal, legal fees, title costs and mortgage company fees. Since it is difficult for many first time home buyers […]

Lawmakers Seek To Raise FHA Minimum Down Payment To 5%

The House Financial Services Committee proposed draft legislation that would raise the minimum down payment on FHA loans to 5% and also prohibit the financing of closing costs. The current minimum down payment for FHA borrowers is 3.5% with a credit score of 580 or higher.  For FHA borrowers with credit scores below 580, a […]