I attended a government loan seminar yesterday and picked up some interesting information I thought I would share…<\/p>\n
Advantages of an FHA Mortgage<\/strong> Disadvantages of an FHA Mortgage<\/strong> Advantages of a VA Mortgage<\/strong> Disadvantages of a VA Mortgage<\/strong> Advantages of a CHFA Mortgage<\/strong> Disadvantages of a CHFA Mortgage<\/strong> With each of these mortgages, the property you are purchasing must be owner occupied. These government loans cannot be used for investment properties.<\/p>\n","protected":false},"excerpt":{"rendered":" I attended a government loan seminar yesterday and picked up some interesting information I thought I would share… Advantages of an FHA Mortgage – No reserves are required to qualify – Lower monthly mortgage insurance – Lower closing costs and no “junk” fees allowed – Gift money is allowed for your entire downpayment – Generous debt to income ratios are allowed (sometimes up to 49%) – Lower credit scores considered (a FICO score as low<\/p>\n
\n– No reserves are required to qualify
\n– Lower monthly mortgage insurance
\n– Lower closing costs and no “junk” fees allowed
\n– Gift money is allowed for your entire downpayment
\n– Generous debt to income ratios are allowed (sometimes up to 49%)
\n– Lower credit scores considered (a FICO score as low as 605 was accepted by this broker)
\n– No first time buyer requirement
\n– No income limits
\n– No purchase price limits
\n– Non-occupant co-borrowers are allowed
\n– Sellers can contribute up to 6% of the closing costs<\/p>\n
\n– Upfront mortgage insurance premium
\n– No restriction on points charged<\/p>\n
\n– Lower credit scores considered (a FICO score as low as 605 was accepted by this broker)
\n– No reserves are required to qualify
\n– Gift money is allowed for your entire downpayment
\n– No montly mortgage insurance premium
\n– No first time buyer requirement
\n– 100% financing available, typically up to $240,000 (however, the broker had seen 100% financing accepted up to $417,000)
\n– No income limits<\/p>\n
\n– There is a funding fee which varies based on the downpayment
\n– Cannot have unmarried co-borrowers<\/p>\n
\n– Lower interest rates than conventional mortgages (rates are set weekly)
\n– Lower closing costs (1% of the mortgage amount)
\n– 100% financing available<\/p>\n
\n– Only available to first time buyers, unless you have not owned in 3 years, or are buying in a targeted area
\n– More paperwork
\n– Purchase price limits
\n– No non-occupant co-signers allowed
\n– Potential for a recapture tax
\n The recapture tax would be either 50% of your home sale profit or 6% of the sale price, whichever is lower. All 3 of these things must happen in order for the recapture tax to be invoked- you sell your house within 9 years, and your income increases dramatically, and you make a profit on the sale of your house.<\/p>\n