FHA loans are not just for first-time home buyers anymore, there are advantages to the program that make it an excellent choice for many buyers. But, Associate Mortgage has many programs that offer these options including loans with even better rates and features than those available with FHA!!

FHA loans offer these advantages:

• Low down payments -- For the most part, borrowers need downpayments of only 3 percent of the purchase price We have other programs with this option.
• Gifts -- Cash required for closing may come from someone else as a gift. Typically, the donor is a relative of the borrower. We have other programs with this option.
• Reserves -- Unlike most conventional loans, which require borrowers to have enough cash on hand at closing to cover two months worth of house payments, the FHA has no reserve requirements. We have other programs with this option.
• Debt-to-Income Ratios -- The current ratios are 29 percent/41 percent. That is, borrowers are permitted to spend up 29 percent of their monthly income on housing and as much as 41 percent of their earnings can be earmarked for all their debts and still be approved for a mortgage. We have other programs with this option.
• And with compensating factors, underwriters can go higher. If the house is new construction that's energy efficient, for example, the back-end ratio can be as high as 43 percent. We have other programs with this option.
• Credit -- A good credit history is required. "This is not a B-C product," Pierce said. "A person cannot have 5-6 pages of credit problems." We have other programs with this option and FHA doesn't!!!

But the FHA does not require credit scores, so it's "an excellent alternatives" for buyers with little or no established credit. We have other programs with this option.

• Seller Contributions -- Sellers can contribute up to 6 percent of the sales prices in the form of closing costs, prepaid items or discount points. "Six percent on a 3 percent down loan is a good deal no matter how you cut it," the trainer said. We have other programs with this option.
• Loan Limits -- Maximum loan amounts are not as high as on conforming loans, but they are "competitive," she pointed out. And they rise in lockstep with increases in the Freddie Mac ceiling. Too bad for FHA!