With all the talk about stimulus money, bailouts and tax credits for this and that, one of the best buyer options is often being overlooked. FHA financing is not getting the press or discussion it deserves.

 

Many buyers are convinced they can't be approved for a loan without a very high credit score and large downpayment. However, FHA loans are quite attainable -- they require only 3.5% down and decent credit. FHA puts far more emphasis on the borrower's debt-to-income ratios.

 

And, FHA financing is not just for first-time buyers and can often be the perfect refinance solution for loan modification of subprime financing.

 

Closing costs for these loans is low, in the 3% range and can be covered by the seller. These costs, as well as initial mortgage insurance premium can be financed into the monthly payments. The 3.5% downpayment can come from a gift or from government assistance programs.

 

On top of the other favorable conditions of this loan, the first-time home buyer can still get their $8,000 tax credit.

 

FHA financing isn't for everybody or every property but it's certainly an option that shouldn't be overlooked.

 

Thanks for your time,

 

Rick Richardson

RE/MAX House of Brokers

417-841-1101