REGARDINGFHA LOANS

Debunking the Myths

FHA loans have been around for along time and have had many

changes along the way. Becauseof that, many people have

misconceptions regarding theprogram.

Myth:

YOU MUST BE A

FIRST-TIME

HOMEBUYER

This is perhaps, the largest myth. Yes, theFHA loan used to be a popular programstrictly for first-time homebuyers, buttoday, there are people of all ages andwith all types of housing history that use

the program.

Myth:

YOU MUST

PURCHASE A SINGLE-

FAMILY HOME FOR

AN FHA LOAN.

You do not have to purchase a single familyhome. You have to purchase a one unit propertyin most cases, but that includes condos and

townhomes. If you choose to use FHA financingfor a multiple unit property, you simply have toprove that you will occupy one of those units.

Myth:

IF YOU DO NOT HAVE

ENOUGH CREDIT YOU

CANNOT GET AN FHA

LOAN

This truth depends on the lender you use, aseach lender can create their own rules in

addition to following the rules the FHA sets, butmost lenders will use non-traditional credit toqualify you for a loan if you do not have enough

credit to qualify.

Myth:

YOU DECLARED

BANKRUPTCY SO NOW

YOU ARE NOT ELIGIBLE

FOR THE FHA

PROGRAM.

It used to be that you would have to wait manyyears to get an FHA loan after a bankruptcy –

typically 7 years. Today, however, you can waitas little as 2 years for a standard bankruptcyand even less time (12 months) if you have

extenuating circumstances.

Myth:

EVERYONE CAN PUT

DOWN JUST 3.5

PERCENT

Most people that apply for an FHA loan will beable to take advantage of the low down paymentrequirement of just 3.5 percent of the sales price,

but not everyone will be able to do this.

Myth:

YOU CAN USE FHA

LOANS ON ANY CONDO

The truth is that yes, you can finance a condowith an FHA loan, but not every condo. The

condo association must go through an approvalprocess first. If they do not get approved by theFHA, then no one can use FHA financing to

purchase a unit in that association.

Myth:

YOU NEED TO MAKE A

LOT OF MONEY TO

QUALIFY

The truth is for any loan, you do not need to makeA LOT of money. What you need to make is

enough to cover the mortgage you intend to takeon in addition to the other monthly obligations

you have and still have money left over.

Finding the

BestFHALender is a one­stop shop offering

useful information about FHA loans and

enabling customers to shop for multiple lenders.

Best FHA Lender

CLICK HERE TO LEARN MORE

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  He is Americas Mortgage Commentator

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Justin Mchood

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