Premier Real Estate

By Greg Downey – Town & Country Mortgage

The Federal Housing Administration, created by the National Housing Act of 1934, is the largest insurer of mortgages in the world – to the tune of 34 million individual properties insured. In addition, the FHA is the only governmental agency that operates entirely from its self-generated revenues. In fact, the FHA program could conceivably be called the grandfather to all modern loans.

So why is FHA such a big deal today, some 75 years later?

• Down payment assistance of up to 3% means it is the only remaining source for 100% financing available in the United States today. Combined with seller-paid closing costs, it’s often possible to step into a home with absolutely nothing out of pocket.

• Loan limits have increased in all Portland/Vancouver-area counties, making an FHA loan a legitimate alternative to higher-priced conventional products.

•  It is possible to qualify with NO credit. A 12 to 24-month history of paying regular, documented bills will suffice.

• Even with mortgage insurance (which, by the way, is tax-deductible for the life of the loan on all loans originated in 2008), the payment is often more competitive than alternative high loan-to-value products.

• Non-occupant co-borrowers are allowed. Mom and dad can help their child buy their first home, and the child doesn’t even have to document his or her income if the parents can qualify on their own.

• Nowhere else in the market today can you find a program willing to lend up to 95% of the home’s value on a “cash-out” basis.

It’s important to work with a mortgage professional who has been familiar with FHA loans for years – not just somebody who got FHA-approved 3 months ago because the market dictated it. Town & Country Mortgage has been approved since 2001 to originate FHA loans. Please give us a call today if you have any further questions about how the FHA can help you buy your next (or first!) home.  You can also reach me through www.reidrealtyteam.com