FHA loans are a fantastic option not just first-time homebuyers but for many buyers looking to purchase a Charlottesville luxury home with a low-down payment and flexible credit options. As there are ways to get around having purchased a home in the past. Plus, you can qualify for an FHA loan even if you have a credit score as low as 500.
There are so many facets of an FHA loan so choosing the right loan will save you the most money and get you into the house that you love. So, get with a qualified and PATIENT Charlottesville mortgage broker to discuss the numerous options.
As you probably know, FHA loans are insured and backed by HUD which means is if you stop paying your mortgage, the lender will foreclose on you and HUD will come back into the transaction and give your lender their money back. This will not help you in the long run as you will be out of the home, but it sure makes getting a loan easier.
Carrying an FHA loan for longer than you need can be costly. It is a good short-term option but not long term as the rules on your loan will tighten.
Many local Charlottesville lenders during COVID-19 will tell you the minimum credit score is 640 but that is not true. It is still a 500-credit score, but many Charlottesville luxury home lenders are choosing a 640-credit score especially if you are self-employed and the FHA will want strong evidence of seeing your on-going income during COVID-19.
The minimum FHA down payment quoted is 3.5% but your down payment will eventually be tied to your credit score. The good news is you can use collateralized loans such as a 401k loan or home equity loan to be able to qualify for the down payment and closing costs. But not unsecured and personal loans or credit card. You can however use a family gift or loan to go towards our closing cost or down payment.
There are also local down payment assistance programs, but most are worthless. To recap, FHA loans are an excellent tool to purchase Charlottesville luxury homes, Charlottesville luxury condos, or Charlottesville luxury townhouses. Just ask your neighbors…Toby Beavers Charlottesville Luxury Realtor – https://www.tobybeaversrealtor.com