Information for First Time Home Buyers
**This is very generalized information and we highly recommend talking with a lender or visiting the FHA’s website for updated info.
The FHA loan program was created to help increase homeownership. The FHA program makes buying a home easier and less expensive than conventional home loan programs. Some highlights of the FHA loan program are:
- Minimal Down Payment and Closing Costs.
- Down payment as low as 3.5% of Sales Price (with a credit score higher than 580….below 580 minimum is 10% down)
- Gift for down payment and closing costs allowed.
- No reserves required.
- FHA regulated closing costs.
- Seller can credit up to 6% of sales price towards buyers costs.
Easier Credit Qualifying Guidelines such as:
- Lower FICO score or credit score requirements.
- FHA will allow a home purchase two years after a Bankruptcy.
- FHA will allow a home purchase three years after a Foreclosure.
Easier Debt Ratio & Job Requirement Guidelines such as:
- Higher Debt Ratio’s than other home loan programs.
- Less than two years on the job is allowed.
- Self-Employed individuals o.k.
These advantages of the FHA loan program has made it one of the best options for most first time home buyers as well as move-up home buyers.
You do not have to be a first time buyer to obtain a FHA loan, anyone may use a FHA loan as long as you do not have more than one FHA insured loan at any one time.
