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Federal Housing
Administration (FHA)
An FHA mortgage
is insured by the Federal Housing Administration. It
may be used to purchase a home with a low down
payment or to refinance an existing mortgage.
The major advantages of
an FHA mortgage are:
- A. The
down-payment minimum is 3% of the sales price.
- B. 100%
of the down payment may be a gift from a
relative, the borrower’s
employer, labor union, government agency, or
even a close friend.
- C. The
down payment may also be a secured or unsecured
loan from a family
member.
- D. Higher
qualifying ratios are acceptable.
- E. The
seller may pay up to 6% of the sales price
toward the buyer’s closing
costs, discount points, and prepaids; including
property taxes and association
dues for the first 12 months, and FHA up-front
Mortgage Insurance
Premiums.
- F. On a
purchase transaction, buyers may finance part of
the closing costs, and
required repairs noted in the appraisal.
- G. FHA
loans are assumable.
- H. There
are no prepayment penalties.
Refinancing with FHA
A homeowner
may refinance an existing FHA mortgage with
“no-credit qualifying” (no cash back allowed).
Rehabilitation mortgages are available for purchase
or refinancing through FHA. The funds to repair
these single family residences are included in the
mortgage loan. Repairs may begin after the loan is
closed.
Please call Charter Mortgage, Ltd. At (808) 942-1101
for a free, no obligation consultation. We look
forward to helping you find the best financing
available for your personal situation.
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