| Many first time home buyers falsely
believe that there are FHA First Time Home Buyer programs designed for
them with low, low rates. The fact of the matter is that the FHA
rate offered to a homebuyer is determined by the Lender (Loan Officer)
with whom they are dealing. Further, if a borrower has good to
excellent credit, he/she may save thousands over the course of a 30
year loan by opting for a Conventional loan program.
97% FHA loans may be most attractive to
borrowers with lower credit scores or no established credit histories.
FHA loans are government insured mortgage loans- and borrowers will pay
extra money each month (for the duration of the loan)
for that mortgage insurance. Bankruptcies must be seasoned for a
minimum of 2 years (some cases 3 years) and all income must be
documented. FHA also imposes a maximum loan amount per county (click
here to view) and the maximum loan amount in the state of
California for single family residences is $239,250.
There is an alternative! Lenders
have created a variety of attractive, flexible loan packages to
encourage first time home buyers.
Savvy home buyers with good credit can
avoid the monthly mortgage insurance with 100% conventional financing!
No mortgage insurance can mean a potential savings every month, and
perhaps tens of thousands of dollars over the life span of the loan!
Additionally, conventional loans
do not require the following:
►
Seller contributions to non-recurring closing costs
►
Special FHA appraisals
►
45 day escrows
►
Pre-payment of mortgage insurance
►
3% down payment
Conventional loans are also available to
borrowers with recent bankruptcies, slow pays, stated income, and jumbo
loan amounts.
Click Here to compare Conventional Purchase Loans to FHA
Loans
Click on the link below to APPLY TODAY without obligation and
a
licensed loan officer will review your information and discuss your
options with you!
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