Finance Tips

FHA financing programs are designed for first time homebuyers—although a home purchaser does not have to be purchasing their first home in order to apply for an FHA mortgage.

FHA has several advantages over typical conventional programs:

• More liberal underwriting requirements for those who need help from co-signers
• More liberal requirements for non-resident aliens
• †Gifts are allowed for all of the down payment and closing costs
• †There is no minimum credit score—although automated underwriting systems do utilize these scores
• † The standard down payment is 3.5% and the seller can contribute up to 6.0% towards closing costs, pre-paids and points.
• † The loans are assumable at the same rate by owner-occupants with credit approval

Financing Tip of the Week

Effective for new FHA transactions 01/01/2010-FHA Appraisals are only valid for 120 DAYS from date issued

Thanks Underwood Finance Team 440-385-5945 for these tips.