FHA Products: Benefits and Protections   

  FHA mortgage programs are insured by the Federal government and are some of the safest products on the market today.

 Benefits and protections for lenders:    

• More security: FHA insures the mortgage, lowering your risk.  
• More qualified borrowers due to:  
  • Lower downpayments: FHA-insured loans have a low 3.5% downpayment and that money can be a gift (Lower downpayments mean higher loan amounts).  
  • Lower costs: FHA-insured loans have competitive interest rates because the Federal government insures the loans.  
• Less likely foreclosure: The FHA has been around since 1934 and will continue to be here to protect borrowers. Should borrowers encounter hard times after buying, FHA has many options to help keep them in their homes and avoid foreclosures.  

Why Clients Choose FHA   

• Get to closing faster and it's easier to qualify:  
  • No minimum credit score is required.  
  • Non-traditional credit is acceptable.  
  • Low downpayment.  
  • Non-occupant co-borrower is permitted.  
  • Expanded qualifying ratios.  
• No prepayment penalties.  
• Fully assumable.  
• Default assistance.  
• Lower premiums.  
• Non-credit qualifying streamlines refinances.  
• Competitive interest rates and lower premiums.  

Additionally, you should be aware that FHA's primary mortgage insurance program, commonly known as Section 203(b), is the centerpiece of FHA's single-family mortgage insurance programs. It can cover one- to four-family homes. It's advantages are:   

• Availability: in all areas of the country, provided a market exists for the property and the home meets HUD's minimum property standards.  
• Versatility: may be used to purchase or refinance a new or existing one-to-four family home in both urban and rural areas, including manufactured homes on permanent foundations.  
• Adaptability: lenders typically offer terms at 15 or 30 years.  
• Negotiability: interest rates are negotiated between the borrower and lender.  

Compatible with industry requirements on:   

• Appraisal and repair.  
• Closing costs.  
• Lender insurance.  
• Automated Underwriting Systems (AUS) using FHA's TOTAL Scorecard.  
• Similar documentation for comparable products.  

FHA's loan products meet your borrowers' needs:   

• Flexible buy and repair with Streamlined 203(k) mortgage.  
• Reverse mortgage (HECM).  
• 95% cash-out refinances.  
• Manufactured homes.  
• Construction - permanent mortgage.  
• Works well with state and local agency products.