FHA Loans and Short Sales- Say YES!

When looking at homes that are in a short sale or foreclosure, some buyers fear that FHA will not finance the loan. FHA loans have increased in popularity because of the Foreclosures and Short Sales!

How do you qualify for an FHA loan? These are the key bullet points: Steady Employment (number one preferably with the same employer). Two years income with either the same pay or increase in pay. 620 credit score or higher with minimal 30 day or more late notices. Bankruptcy must be at least two years old and foreclosures, minimum three with perfect scores after. Mortgage payments should be about 30% of your gross income. According to the government: ” FHA is the most flexible lender regarding debt ratio’s”.

For those homes that are “handyman specials” there is an FHA program called HUD 203 (K). This program allows a buyer to purchase a fixer-upper and has some niffy quirks like protection for the borrower should the repair or renovation process cost more than anticipated. There are some additional steps to getting a 203 (K). The buyer must have a detailed list of the repairs needed for the home. The home needs to be repaired by a licensed contractor. Because you may not be able to live the home while the work is being completed, you can choose to include up to six mortgage payments added to the cost of doing the rehab work!

FHA rates are at an all time low. Depending on your credit, you can get a rate as low as 4.2 percent! Don’t forget that your down payment can be as low as 3.5%! Take advantage of the short sales in Palm Coast while utilizing FHA! For more information, contact Beach Bum Realty. It’s time to buy a house!

Palm Coast Short Sales