Hilde's Mortgage Blog

Let's talk about some specific loan programs helping home buyers today. The biggest talk about today's loan programs evolves around FHA financing. You would think nobody still remembers that FHA guaranteed loans have been around for many years. They fell off favor during the subprime and alt-a area because they were deemed to cumbersome.

Well guess what, it's hard to beat an FHA loan today. Loan limits are well within the affordable financing range, down payments are as low as 2.25%. The upfront insurance premium of 1.75% can be added to the loan and spread over the live of the loan and makes hardly any impact on the payment. The monthly mortgage insurance is much lower then standard private mortgage insurance. Qualifying ratio are more lenient then conventional financing. Gift funds from qualified sources are allowed for all funds needed to close, that means down payment, closing cost and prepaids. Seller can pay all buyer closing cost and prepaids. It's hard to beat an FHA loan especially for the first time home buyer.

Give me a call to go over more specifics. I am happy to help.