There was an interesting article with portions related to the FHA program in a California paper recently. Here are some relevant highlights:
For borrowers, FHA-insured mortgages are advantageous because the required down payment is only 3 percent and all of that can be a gift from a relative, an employer or a nonprofit group. FHA also allows multiple co-borrowers, none of whom has to live in the house being purchased or refinanced.
In addition, FHA borrowers can carry more debt and qualify with lower credit scores than private insurers typically allow.
Implementing new mortgage ceilings could take one to three months, according to James Lockhart, the director of the Office of Federal Housing Enterprise Oversight, the entity that ensures the financial soundness of those government-sponsored enterprises.
Learn more about current FHA programs by contacting us.