FHA Loans in Jeffersonville, IN
Indiana, Kentucky & Florida’s #1 Source For Your Mortgage Needs
FHA Loans - 3.5% Down of Purchase Price
An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD), so FHA stands for Federal Housing Adiministration.
FHA loan programs are beneficial to those buyers with less available cash and lower credit scores, who do not meet the requirements for conventional loans.
The rates on FHA loans are generally market rates and down payment requirements are lower than for conventional loans, which allow more people to become homeowners.
Some of the other benefits of FHA financing:
- Lower down payment is required than a conventional loan
- Lower credit score (580) is required, so more people can qualify
- Some closing costs can be financed, allows buyer to leave some cash in their nest egg
- Lower monthly mortgage insurance premiums, saving money is great
- Under certain conditions, automatic cancellation of the premium from your mortgage
- Flexible underwriting criteria than conventional loans, which is helpful for those buyers with credit issues in the past
- Limitations on the amount lenders can charge for some closing cost fees
- (e.g. the origination fee can be no more than 1% of mortgage)
We’ve had many questions recently about how long after Chapter 13 can a new home be bought. Well, the wait is only one year with Chapter 13. The wait is a bit longer with Chapter 7 bankruptcy which is two years, a foreclosure has a waiting time of three years, and a short sale would push you out to three years. When you are ready to discuss your specific scenario, then give us a call. We create homeownership.
- Chapter 13 = 1 year
- Chapter 7 = 2 years
- Foreclosure = 3 years
- Short sale = 3 years
Click here to view a loan comparison sheet.
Is a FHA loan the right loan for you!?! Give us a call at 812-941-0926 and we can discuss with you.
"Home Ownership Is The Cornerstone of a Strong Community"
Rick Renzi
