CLS Financial Services Offers FHA

FHA mortgage loans are issued by federally qualified lenders and insured by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development.

 FHA loans are an attractive option, especially for first-time homeowners:

• Generally easier to qualify for than conventional loans.

• Lower down payment requirements.
• Cannot exceed statutory loan limits.

Learn more about FHA loans. (Department of Housing and Urban Development)

An FHA loan is a loan insured against default by the FHA. In other words, the FHA guarantees that a lender won’t have to write off a loan if the borrower defaults – the FHA will pay. Because of this guarantee, lenders are willing to make large mortgage loans.

The FHA promises to pay lenders if a borrower defaults on an FHA loan. To fund this obligation, the FHA charges borrowers a fee. Home buyers who use FHA loans pay an upfront mortgage insurance premium (MIP) of 1.5%. They also pay a small ongoing fee with each monthly payment.

 10 Reasons Why to do an FHA loan:

1. Low Down payment of 3.5% with high loan to values

2. Total Down payment and Closing Costs may consist of Gifted Funds  

3. Seller can pay all Buyer Closing Costs as high as 6% of Purchase Price

4. 3-4 Units properties allowed at higher loan amounts (see table below)

5. No Cash Reserves required (unless 3-4 units)

6. Non-Occupying Co-Borrowers are allowed for qualifying purposes

7. Minimum Credit Score 620

8. No Income Limits

9. Program is not limited to First Time Homebuyers but must be Owner Occupied

10.Refinances Available

a. Cash Out Refinances allowed to 85% maximum Loan-To-Value

b. Rate and Term Refinances up to 97.75% maximum Loan-To-Value

If you have questions about this loan program Please Click Here
If you would like to know if you qualify  Please Click Here

 

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