FHA Loans Update May 2009

Below are are the new FHA Updates:

1. 1.The borrower must meet standard FHA credit qualifications (there’s no
   set credit score barometer, but a borrower’s debt-to-income ratio is
   heavily considered).
2. The borrower is able to finance the upfront mortgage insurance premium
   into the loan. The borrower will be responsible for paying an annual
   premium.
3. The FHA mortgage requires a low 3.5-percent down payment, and that
   money can come from a variety of sources, including parent gifts and
   HUD downpayment assistance grants.
4. Closing costs are also low – typically 3 percent of the total purchase
   price – and are usually covered by the seller in today’s market. They
   can also be incorporated into monthly payments.
5. Eligible properties are one-to-four unit structures, and each state
   has a purchase price limit (as high as $400,000) for FHA loans.
6. If a buyer finds a fixer-upper, the FHA 203(k) program can help the
   person purchase or refinance the property, with the cost of repairs
   and improvements included in the loan.
7. FHA home mortgages aren’t just for first-time homebuyers. FHA
   refinance loans can help people get out of toxic debt situations
   caused by subprime mortgages with high interest rates.

If you need help buying or selling a home in the Cincinnati area, call Charlene Fay at 513-602-9000 or email at CharleneFay@REMAX.net.