FHA Home Loans in Maryland and Virginia
FHA home loans are popular with first time home buyers because they offer these special benefits:
Higher loan to value ratios. Most Conventional loans give the best interest rates to borrowers who limit the monthly Principal, Interst, Taxes and Insurance "P.I.T.I." to no more than 28% of the borrowers monthly gross income.
FHA loans permit LTV ratios of up to approximately 41% of the borrower's monthly gross income. We say"approximately" because loan approval is based on many factors, credit report, income, monthly debt payments, etc. A borrower with very good credit, little in monthly debt payments, good job history and other positive factors may qualify for a higher than 41% LTV ratio.
Other reasons borrowers may prefer the FHA loan to Conventional is the more liberal credit approval guidelines that permit loan approvals even if the borrower has experienced minimal late payments or other matters as long as the delinquencies are not numerous, recent and can be explained to the lender's satisfaction.
Finally, FHA loans permit a "NON-OCCUPANT CO-BORROWER" as a co-signer for the home buyer.
FHA 203(k) Loans
FHA - 203(k) is a program that permits home buyers to finance the purchase of a home and also add into the loan, the cost of certain repairs. Repairs or upgrades that are permitted to be financed include roof, heating and air conditioning equipment, kitchen cabinets, new bathroom fixtures, tiles etc.
Significant upgrades to a home may be financed under the FHA203(k) program. This permits buyers to not only buy a home but to add the cost of upgrades into the mortgage. This is a very good program for home buyers who wish to benefit by the low cost of homes that need upgrading.
USDA HOME LOANS - NO DOWN PAYMENTS. USDA Home Loans do not require a down payment, the seller can contribute up to 6% and there are plenty of other options to ensure YO U CAN LITERALLY BUY A HOSE WITH NO MONEY! How? Well once we get the closing covered you are entitled to your earnest money back at settlement. The minimum credit score for a USDA loan is only 620.