Personal Finance

www.REIClub.com – Are FHA Loans Good for Home Buyers? Here Are The Pros and Cons To An FHA Loan. Hi, this isFrank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got quick video on the pros and cons of Federal Housing Administration (FHA) Loans. What are FHA Loans? The FHA doesn’t lend you the money, they guarantee the loan, so the lender doesn’t take on a financial risk by extending you credit. the FHA guarantees that a lender won’t have to write off a loan if the borrower defaults — the FHA will pay. The insurance removes or minimizes the default risk lenders face when buyers put down less than 20 percent. Without further approval from FHA, its approved lenders are authorized to Take loan applications Process loan applications Underwrite and close the loan FHA Requirements: www.fha.com – mortgage insurance – policy that protects lenders against losses resulted from defaults on home mortgages – fha loan limits – variety of housing types, state and county in which the property is located. – loan checklist – information needed by your loan officer – closing costs – only some closing costs are covered, rest to seller – fha dept ratios – fha credit issues – no credit, bankruptcy, foreclosure Pros to FHA Loans – low down payments – 0-3% down payment – low interest rates – better chance for loan approval – credit score is not highly weighted – but credit is needed – flexible repayment terms – multiple options – work with you – during hard …