FHA Mortgage Update for Virginia Beach and Chesapeake Real Estate

filed under: Real Estate posted on January 20th, 2009

When Do I Choose An FHA Loan Instead of Any Other for a Virginia Beach or Chesapeake real estate purchase?

When you have very little money to put down and you think your credit might not be the best.

FHA Loans have some advantages over other types of financing. You still get competitive rates with only 3.5 percent down, and you get a choice between fixed and adjustable.

Yes, you’ll have a form of private mortgage insurance premium (MIP), but it’s at a lower rate than conventional loans with 3 percent or 5 percent down.

Can I Use a Co-Borrower to Help Me qualify for an FHA Loan?

Yes, and this is a unique advantage to FHA loans.

If you want to buy a house or condo to live in and can’t quite make the monthly payments on your own, your parents or another family member can help as “non-occupying co-borrowers.”

It is used to be that almost every loan allowed for someone else to be on the note to help the borrower qualify from an income or credit standpoint, but recently conventional loans made the owner-occupant qualify on her own.

FHA is the only program that allows for the income from non-occupants to be used when qualifying for the loan.

This is a popular program for people who want to buy a condo or house for their college student to live in (also referred to as “Kiddy Condo”). By putting the college student on the note, suddenly it’s considered an “owner occupied” property, resulting in lower rates for the loan.

Learn about closing costs for your Virginia Beach, Chesapeake, Norfolk, Suffolk, or Hampton Roads real estate purchase.

Are you a Veteran who can use a VA Loan?

posted by Dennis Blackmore

This entry was posted on Tuesday, January 20th, 2009 at 10:05 am and is filed under Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.