Cynthia Alfred's Blog

• FHA adopted the industry appraisal standards permitting the use of the Fannie Mae appraisal forms with no additional specialized documentation, no Valuation Conditions form or Homebuyer Summary.
• FHA has eliminated unnecessary requirements to make minor repairs
• The homebuyer and the seller, individually or jointly, can pay closing costs as agreed to in the sales contract.  FHA no longer limits what closing costs the homebuyer is permitted to pay.
• Caps on payment and debt-to-income ratios are more generous than most standard conforming mortgage products.  The payment-to-income ratio may not exceed 31% and the debt-to-income ratio may not exceed 43%.
• A minimum credit score is not required.  In fact, one may not be turned down for an FHA mortgage solely for lack of credit history.
• The buyer’s entire cash investment–as little as three and one-half percent–can be a gift from a family member, employer, charitable organization or local government entity.
• The seller can contribute up to six percent of the home’s price toward closing costs through a seller’s concession.
• There are no prepayment penalties on FHA-insured mortgages.
• U.S. citizenship is not required but, for those who are not citizens, they must be lawful permanent or non-permanent resident aliens with a valid Social Security Number.

Since FHA was created in 1934, it has helped more than 34 million families become homeowners, many by working with their REALTOR to achieve their dream of homeownership.  Backed by the full faith and credit of the Federal government, FHA-insured mortgages are one of the safest and most affordable types of mortgages available to homebuyers. 

If you have questions on this or any other real estate topic, call me at (925) 216-0860.  To search the MLS for free and view homes for sale, go to www.CynthiaAlfred.com

National Association of Realtors