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FHA Part III- Help is on the way dear!

FHA Part III- Help is on the way dear!

Nowadays saving for a 20% down payment is hard, probably even feels impossible to some of us. FHA gives us the opportunity to buy a home with only 3.5% down and you are if needed you can get down payment assistance or gift funds for the 3.5%.  FHA also allows a lower credit score, 640 is the magic number for most investors.

How is FHA able to do this?

Remember the previous posts, Part I & II?  Upfront Mortgage Insurance Premium (UFMIP) & Monthly Mortgage Insurance (MIP), these premiums help secure the FHA loan incase the mortgage would go into default. This in return allows for a lower down payment.

There are lenders who advise against getting an FHA mortgage, mainly because of the monthly mortgage insurance.  This surprises me because yes, it does increase your monthly mortgage payment BUT it is what allows you to purchase the home to begin with.  And quite honestly who stays in the same mortgage for the life of the loan (average 30 yrs)?  Almost every homeowner will refinance at some point because they are lowering their rate but also will have enough equity which will allow them to do a conventional loan removing their MI.

FHA has brought the dream of home ownership to many Americans and will continue to do so.  Learn more about FHA loans here.

If you have any questions please contact us.  If you would like to apply for an FHA loan,click here for our secure online loan application to get started.

~Cheers

Ray Williams

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Licensed in Colorado as Maestro LLC (DBA Mortgage Maestro Group) is an Equal Housing Lender.

387 N Corona St #646, Denver, CO 80218.

NMLS Unique Identifier #1838215

Consumers wishing to file a complaint against a company or a residential Mortgage loan originator should complete and send a complaint form to the Texas department of savings and mortgage lending, 2601 North Lamar, suite 201, Austin, Texas 78705. Complaint forms and instructions may be obtained from the Department’s website at www.sml.texas.gov. A toll-free consumer hotline is available at 1-877-276-5550. The department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed residential mortgage loan originators. A written application for reimbursement from the recovery fund must be filed with and investigated by the department prior to the payment of a claim. For more information about the recovery fund, please consult the department’s website at www.sml.texas.gov.

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