BUYING A HOME - FHA LOAN

FHA LOANS:

PURPOSE: Purchase or Refinance

FACTS:

No minimum credit score

Non-traditional credit is acceptable

Low 3.5% down payment (which can come from a gift from a family member and a few other sources, with certain limitations)

Seller can contribute 6% to closing costs (often called "seller concessions")

Non-occupant, co-borrower is permitted

Expanded qualifying ratios

No prepayment penalties

Fully assumable

Default assistance

Lower premiums

Non-credit qualifying, streamline refinances

Availability: in all areas of the country, provided 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 urban and rural areas, including manufactured homes on permanent foundations

Adaptability: typically offered at terms of 15 or 30 years

It is suggested that you contact your attorney and/or your CPA or financial planner should you wish to discuss any tax or legal implications relative to your financial goals, the tax consequences of how you will hold title to your property, the tax deductibility of closing costs, points, and/or mortgage interest, and/or the legal and tax implications as to your purchase and/or sale of property or the refinancing of your mortgage.