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I believe an educated Buyer or Seller will be far happier during the home buying/selling process.

Hi, I am Kim Buish (pronounced Bush). I may not be related to former President Bush, but I CAN help you whether you want to buy a WHITE HOUSE, a blue house or a yellow house! Please check back often for IMPORTANT and HELPFUL Real Estate information.

Should you choose an FHA loan to buy a home in 2019?

January 7th, 2019



Are you planning on buying a home in 2019? If so, one mortgage loan that you may be considering is an FHA loan.

If you're not sure if an FHA loan is right for you or not, this article will provide you with some details about FHA loans so you can make an educated decision.

Things To Know About FHA Loans

Lower down payments than most conventional loans.

Broader qualifying ratios - total house payment with MIP can be up to 31% of borrower's monthly gross income and total house payment with all recurring debt can be up to 43%. There is a stretch provision taking it to 33/45 for qualifying energy efficient homes.

Seller can contribute up to 6% of purchase price; this money must be specified in the contract and can be used to pay all or part of the buyer's closing costs, pre-paid items and/or buy down of the interest rate.

Self-employed may qualify with adequate documentation - two year's tax returns and a current profit and loss statement would be required in addition to the normal qualifying and underwriting requirements.

Liberal use of gift monies - borrowers can receive a gift from family members, buyer's employer, close friend, labor union or charity. A gift letter will be required specifying that the gift does not have to be repaid.

Special 203(k) program for buying a home that needs capital improvements - requires a firm contractor's bid attached to the contract calling for the work to be done. The home is appraised subject to the work being done. If approved, the home can close, the money for the improvements escrowed and paid when completed.

Loans are assumable at the existing interest rate with buyer qualification. Assumptions are easier than qualifying for a new mortgage and closing costs are lower.

An assumable mortgage with a lower than current rates for new mortgages could add value to the property.

Search For Homes In Houston Texas

For more information on FHA loans, or to search for homes in Houston Texas, contact me today at (713) 819-1642 or click here to connect with me online. 


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Disclaimer : The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the Houston Association of REALTORS®

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I believe an educated Buyer or Seller will be far happier during the home buying/selling process.
JLA Realty
5332 FM 1960 East Suite C, Humble, TX 77346   Get Directions
Phone: (713) 489-8130
Fax: (866) 720-7817
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