A brief update on the real estate market for September 2019.
4 minute read By Jason Gelios REALTOR®
FHA is a great option for home buyers who are looking to put a smaller down payment on a home while obtaining
a great interest rate. Like everything else in life, there are pros and cons to this type of mortgage.
Here are some pro’s and con’s of obtaining an FHA mortgage.
Low down payment requirement: 3.5%
Gift funds may be used for the total down payment
Lower credit scores are acceptable
Easier to refinance with streamline process
Higher debt to income allowed
Can be assumable
Easier to qualify for
Home sellers can contribute up to 6% towards your closing costs
Purchase price must not exceed your loan limit
FHA has more paperwork
Mortgage insurance is higher compared to other loans
FHA has more pros then cons and can be a great option to allow potential home buyers to get a mortgage to purchase a home. Always work with a well experienced loan officer to see if an FHA mortgage is best for you.
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By Jason Gelios REALTOR®️
FHA mortgages allows you to use funds as a gift for 100% of your down payment. A friend, relative or company can gift you the money so that you can get this type of mortgage at zero down.
Here are some FHA pros:
Low down payment requirement of 3.5%
Lower interest rates
Gift funds can be used to cover down payment
Lower credit scores may be approved
A higher tolerance of high debt-to-income ratios
Mortgage is assumable
An easier mortgage to qualify for
Sellers can offer up to 6% of the closing costs
Purchase price can not exceed the loan limit
More paperwork involved
Mortgage insurance is more expensive
While there are pros and cons to this loan, you will find that there are more pros which makes this type of mortgage a viable option for homebuyers.
Jason Gelios is a Husband and Father. After that, a Top Producing REALTOR®, Author of the books 'Think like a REALTOR®' and 'Beating The Force Of Average', Creator of The AskJasonGelios Real Estate Show and Expert Media Contributor to media outlets across the country.