FHA lending is exploding right now. It now represents more than 30% of all loans being written in the country. FHA is appropriate for almost any type of home buyer. FHA is really geared for first-time home buyers, buyers who have little-to-no money down, buyers with less than perfect credit. It also allows for non-occupying co-borrowers.
FHA is the solution – especially with the impact of the Housing and Economic Recovery Act of 2008. H.R. 3221 creates new opportunities for first-time home buyers: $7,500 tax credit, grant loans and gifts for down payment and closing cost, and seller can still provide up to 6% in seller concessions.
With FHA, a buyer that’s in the middle of a Chapter 13 bankruptcy can actually get an FHA loan. Competitive interest rates with no pre-payment penalties and low monthly mortgage insurance is just a glimpse of just how powerful using FHA financing can be in today’s difficult market.
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