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mtgfixit · Joined: 13 Apr 2009 Posts: 73 28.11 Dollars($)

ANSWER:

Federal Housing Administration (FHA) programs are loans insured by the FHA, which allows a buyer to buy a home with only a 3 percent down payment. These programs allow the entire down payment and closing costs to be gifted from a family member. These programs also allow borrowers with past credit challenges such as late payments, collections, or even bankruptcies to buy a home after maintaining at least 12 months good credit history. FHA loans allow buyers to qualify for a larger loan by allowing higher debt to income ratios, co-borrowers who don't live in the home, and lower initial interest rates. They also allow the sellers to pay all closing costs. The downside to these loans is the fact that the loan limit varies and there is a mortgage insurance premium (usually about 2.25 percent of the loan amount) which is added to the base loan to calculate the total loan amount.

Garysnober · Joined: 17 Mar 2009 Posts: 450 15.29 Dollars($)

Hi, Very nice post as this question is asked on a daily basis. I would like to add that this type of loan does require a min fico score of 620.

Realgeni · Joined: 13 Apr 2009 Posts: 1434 99.76 Dollars($)

The down payment requirment on the FHA loan has been changed from 3% to 3.5% from January 2009.

Rememebr you will pay PMI or MIP on a FHA loan when you make less then 20% down payment.

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WHAT IS AN FHA LOAN?