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| FHA Loans |
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FHA (Federal Housing Administration) Loans
Let's take a look at a few FHA Loans: Nehemiah Down Payment Assistance ProgramNehemiah is a non-profit
organization which offers assistance with down payment and closing costs. The
catch is that the seller must give these funds back at closing to
Let’s take a look at an example: Assumptions: Seller lists a home for $170,000 but wants $160,000 bottom line. We will utilize an FHA 30 year fixed program with 3% down payment and $4,400 closing costs which can be 100% gift from Nehemiah. The appraised value of the home is $170,000.
At closing, Nehemiah will gift $9,500 ($5,100 down payment + $4,400 closing costs) to you and the seller must give Partners in Charity $10,000 ($9,500 plus $499 administrative fee) but he will walk away with approximately $160,000 bottom line and everybody is happy. The seller sells the home for the money he wants and you pay no down payment and closing costs. Visit GetDownPayment.com for more information on the program. 2-1 Buydown FHA ProgramThis program is an FHA 30 year fixed program with a temporary decrease in rates for the first 2 years. The mortgage payments are pre-determined with the initial payment being calculated at a rate which is 2% below the final rate. The interest rate will increase 1% per year for the next 2 years and will remain at that final rate for the duration of the 30 year term. Here is an example: Assumptions: 2-1 buydown with 4.75% rate (APR 4.92%) check today's loan rates: $170,000 purchase price, $2,000 real estate taxes, and $600 year home insurance.
The Principal and Interest payment for a 30 year fixed mortgage at the current rate of 6.25% would be $1,046 per month which is $57 lower than the final payment $1,103 on the buydown loan, but the program allows you buy much more house with a 4.75% initial rate. In this case you would be able to purchase $25,000 more house on the 2-1 buydown program which can get you an extra bedroom! This loan is well-suited for a first time home buyer or young professional whose income situation will improve over the next few years, but they want the best home they can afford today. Finally, you can utilize Nehemiah Down Payment Assistance with this program. How can you beat that? FHA Kiddie Condo ProgramIf you are a parent,
FHA has made it easier for you to help your son or
daughter purchase a new home. Instead of paying rent on an apartment, your son
or daughter may be eligible to purchase
Please contact Gerald Tribuzio at 847-516-5743 or email jtrib@firsthomebuyers.net if you have questions or want more details on these great programs. Please apply for fha mortgage if you would like to get pre-approved today for this program.
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