Thursday, June 7, 2012

Are FHA Loans Only for Poor People?

Many people think FHA loans are only for poor people and first-time home buyers. Nothing could be farther from the truth.

There is no income restriction with an FHA loan: no minimum income and no maximum income. Also, there is no requirement that a buyer be a first-time home buyer to get an FHA loan.

There is a maximum loan amount for FHA loans. It is currently $406,250 for the Metro-Denver counties, and $460,000 for Boulder County.

Why would someone want to get an FHA loan, rather than a conventional loan? There are three main reasons.

1. FHA loans allow much higher debt-to-income ratios, meaning a buyer can get a more expensive house
2. There are no additional, stricter mortgage insurance underwriting guidelines like there are with conventional loans, meaning more people will be able to qualify for an FHA loan
3. Interest rates are usually lower with an FHA loan if the borrower does not have very good credit (720 and above)

Why do some lenders try to talk borrowers out of getting an FHA loan? Because those lenders are not approved to sell FHA loans. Very few sales people are going to tell you how good a product is if they can't sell it to you.

Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:

By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

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