First time Home Buyers 96.5 percent LTV Loan
HOW IT WORKS
By serving as an umbrella under which lenders have the confidence to extend loans to those who may not meet conventional loan requirements, FHA’s mortgage insurance allows individuals to qualify who may have been previously denied for a home loan by conventional underwriting guidelines.
FHA loans benefit those who would like to purchase a home but haven’t been able to put money away for the purchase, like recent college graduates, newlyweds, or people who are still trying to complete their education. It also allows individuals to qualify for a FHA loan whose credit has been marred by bankruptcy or foreclosure.
NUTS AND BOLTS
The most popular FHA home loan is the 203(b). This fixed-rate loan often works well for first time home buyers because.
It allows individuals to finance up to 96.5 percent of their home loan which helps to keep down payments and closing costs at a minimum.
The 203(b) home loan is also the only loan in which 100 percent of the closing costs can be a gift from a relative, non-profit, or government agency.
Get the best terms and rates for your home purchase or refinance today!
You can take out an FHA 203b loan to purchase a home that has 1-4 living units in the structure. The down payment required is 3.5%; unlike conventional loans, the down payment may be a gift from a family member; a grant from another government program or perhaps aid from a local non-profit agency.
Your FHA loan can include financing for the loan closing costs and the initial insurance payments; all you need to do is develop a source for the down payment.
An additional FHA 203K Home Loan
An FHA 203k loan allows a borrower to fund their home purchase using only one loan, for both the home improvement and the home purchase at the same time. … 203k loans are still guaranteed by the FHA, Federal Housing Administration which means lenders take less risk when offering this loan. As a result, it’s easier to get approved (especially with a lower interest rate) and additional, easier, down payment options than dealing directly with a national bank. Contact CambridgeHomeLoan.com today for the lowest rates and best terms available today.