For first time home buyers, an FHA loan requires a 3.5% down payment, a more affordable financial investment and a popular choice for individuals or families with modest incomes that are often faced with challenges in saving for the required down payments and closing costs involved in a home purchase.
FHA loans, also allows a more relaxed debt to income ratio, contributions from the seller and financial assistance from family members in the form of a gift letter. Another option for a buyer with a tight budget to qualify for a higher mortgage payment, is with a co-signer; of course, they would need to qualify financially, since they will be responsible for the repayment of this loan and any other mortgage loan that they may have. Lastly, as long as lending institutions follow FHA guidelines for loan approval, there is a guarantee to the lender for compensation for any losses. (source: David Reed) posted 7/7/22 ) Miriam Hernandez, Broker-Owner ELC Real Estate LLC, www.elchomes.com
elcrealty@gmail.com