FHA Home Loans - up to 100% Financing

FHA Offers Higher Loan Amounts

Currently, the FHA (Federal Housing Administration) is quickly becoming the only mortgage provider available to thousands of home buyer's with low credit scores (now it is 620 or higher). Borrowers applying for FHA home loans has increased substantially since October 2007.

Just a few years ago, FHA loans were on the downfall due to housing prices increasing almost everywhere in the country and the maximum loan limits that FHA had. With FHA increasing their loan limits up to a maximum of $729,000 in certain high cost areas, they are once again moving to the forefront. At the moment with the housing market slowing down due to Fannie and Freddie Mac offering numerous no documentation loans to borrowers that should not have been offered a loan, the mortgage industry is suffering. As a result, they, Fannie and Freddie have essentially erased 100% financing on home loans.

  

FHA has not changed and is still a 97% mortgage, actually it is 96.5%. However, they permit a borrower's required 3% down payment to come from a broad range of sources. This includes gifts, grants and certain family and government sourced loans. No other mortgage loan program, which is currently being underwritten, allows a homebuyer to borrow his down payment, no matter the source! In addition, there is a new grant program called "G.A.P." from the government. It is a down payment assistance program tailored for borrowers purchasing a owner occupied home using an FHA mortgage. Take advantage of this as there is no telling when it could be withdrawn

 

G.A.P. will “gift” up to 10% of the home's purchase price to a qualified borrower who buys a home if they are enrolled in the program.   This money does not have to be repaid by the borrower. Any home seller can enroll their home into the G.A.P. program, so long as their property meets the requirements for an FHA mortgage. Mortgage Lenders and Brokers can assist their borrowers with applying for the down payment grant. It is quite simple, the borrower only needs to qualify for an FHA mortgage loan and buy a home while enrolled in G.A.P., then the FHA borrower will qualify for a down payment grant.  

 

As an example shown below; During closing, the enrollment process requires the seller agree to contribute part of their equity to G.A.P., which is an amount equal to the grant being gifted to the borrower, along with a $395.00 processing fee. 

 

Example:      $200,000.00 Purchase Price                                    $ 6,000.00 Grant from G.A.P. to Buyer

                        $        500.00 Transfer Taxes                                  $ 194,000.00 FHA Mortgage to be repaid by Buyer

                        $     6,395.00 G.A.P. Enrollment Fee                    $200,000.00 Total Paid to Seller

                        $   12,000.00 Real Estate Commission

                        $     3,000.00 Borrowers Closing Costs

                        $  178,105.00  Net to Seller

                                                           

With the seller making this contribution, they are making funds readily available for more families to purchase a home. It simply replenishes the pool of funds, so that G.A.P. is available for generations. Moreover, the program does not require one dime of taxpayer money and is self-funding.A much more efficient financing model for down payment grants.

 

Mostly it should be known that G.A.P. can be provided to any borrower purchasing a home who uses an FHA mortgage, anywhere in the United States of America.

 

"What are Grant America Program’s key advantages?"

·        G.A.P. is fully funded and can never run out of funds.

·        G.A.P. has HUD (Housing and Urban Development) approval.

·        G.A.P. is at the top when it comes to Down Payment Assistance.

 

 

"What are Grant America Program’s key disadvantages?"

 

exactly.not many.

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   Investors and Buyers, and Homeowners use the FHA 203k Rehab Loan to fix properties that need improvements