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Mortgage Rates are about 5% right now. They haven’t been that low in 37 years. If you want to buy a home at the best possible rate now is the time!
Let the Federal Government Help You Reach Your Goal of Home Ownership through the FHA Loan Program!
FHA loans are guaranteed home mortgage loans, backed by the federal government. Since the government is guaranteeing the loan, Homestar Financial will likely offer you a better interest rate. There are many other benefits of FHA loans to consider:
- Only a 3% down payment is required (as opposed to the usual 5%).
- There are low closing costs, and all mortgage insurance can be financed
- There is a higher debt-to-income ratio associated with FHA loans. Usually a lender will require that the monthly payment on your home mortgage loan not be more than 28% of your income for that month, and that all of your other debt payments not exceed 36% of your monthly income. With FHA loans, your monthly payment can be up to 29% of your monthly income, and your other debt payments can be up to 41% of your monthly income. In some cases your debt-to-income ratio can be higher, if you can justify the increase.
- Non-citizens qualify for minimum down payment home mortgage loans.
- Your credit history doesn’t need to be perfect.
- Get cash out of refinances of up to 85% without a higher rate.
- If you plan on occupying no less than 51% of a condominium building, you can get an FHA loan for that property. For more information on FHA loans for condominiums, click here.
- Get up to a 6% seller contribution on a minimum down payment mortgage.
- FHA home mortgage loans require no cash reserves.
- FHA loans are available to family members co-owning a property even if only one of them resides in that property.
- 100% of your down payment can come from gifts.
- If you sell your home, your FHA home mortgage loan is assumable at the rate on your note. This can be an incentive for potential buyers.
- You can use the FHA Streamline Refinance program to refinance investor properties at owner-occupied rates. You can do this even without any documentation of your income, credit score, or employment status.
- Your appraisal is valid for 6 months.
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