FHA First Time Buyer Program

There is the FHA First Time Home Buyer Program which helps first timefor-sale-sign-04buyers who might not be ideal candidate for traditional mortgages. FHA program has the following benefits for first time home buyers.

Credit Score Requirement –The FHA underwriter will evaluate the entire credit profile to determine the borrower’s likelihood of repayment. Currenty,  several lenders are requiring 620 credit scores.

Bankruptcy okay – Chapter 7 bankruptcies are allowed if discharged over 2 years ago (or 1 year with extenuating circumstances). Chapter 13 bankruptcies are allowed with a minimum of 1 year of on time plan repayment and trustee approval.

Less Money Needed – FHA loans allow the seller to pay up to 6% of the sales price toward the closing costs and only require a 3.5% down payment.

Housing History– FHA does not require a rental or other housing history if it is not available.

Non-occupying co-borrower allowed – FHA allows a non-occupying relative to co-sign the mortgage. The non-occupant’s income and assets can be used for qualification purposes. This is generally used for parents to help their children buy a home.

Property types – 1-4 unit, condos, town homes, modular homes, and manufactured home

No cash reserves required – Unlike most conventional loans, FHA does not require you to have cash reserves
on 1-2 unit properties. However, having reserves can help strengthen the overall credit profile.

Housing prices might still be declining but if you plan to stay in your home for a long time you’ll will come out a head in the long run. If you think about a home as a home and not as an investment you will have an easier time taking the plunge into home ownership. If you can afford your dream home now go for it.  Remember, you can’t really time a market bottom.

For more valuable information please go to I Want to Buy my Home at the Bottom.

If you are looking for assistance in finding the perfect home in Hoboken, contact Eddie Perez at (201) 344-2886 or go to Hoboken Condo Expert.

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