Why homebuyers choose FHA loans
Last year, Fairway Independent Mortgage closed over 6,800 FHA loans and lent $1.6 billion dollars under the FHA loan program. That is more than most lenders do in 5 years! With numbers like that, Fairway knows a thing or two about FHA loans and closing them quickly and efficiently.
As you know, FHA loans are quite popular with first-time homebuyers, especially in the Charlotte area. Knowing the highlights of the loan can really help you explain the options to your buyers.
Here are a few reasons why so many first-time homebuyers (and even many move-up homebuyers) choose FHA loans:
- Down payment as low as 3.5%
- Down payment can be a gift from a family member or a loan from a 401k
- Credit scores can be as low as 640, with no higher rates for lower scores
- Consideration given as little as two years from a short sale or just one year from bankruptcy
- Loan amounts as high as $271,050 in most of the Charlotte area (this just dropped from $303,750 for any loans that fund after October 1, 2011)
As mortgage planners, we work with our clients to make sure that the loan program they select will be the right tool to help them accomplish their financial goals. If you know any first-time homebuyers, we would happily help them with our experience and expertise with FHA home loans.