Utah FHA Loans
Federal Housing Administration loans or the FHA loans are made available with the main purpose of helping the low to middle income bracket families secure financial loan or aid in a very safe, hassle-free and simple manner, without having to worry anymore about the down payments and other expenses and costs that go with the regular or conventional mortgages. Federal Housing Administration mortgage loans are provided for the purchase of single-family homes, 2-unit up to the 4-unit homes, condominiums and other properties.
The FHA mortgage loan program indeed was put up by the federal government to help in increasing homeownership in the United States. The main purpose of the FHA loan program is to make the buying a house at lot easier and inexpensive compared to the other types of home mortgage loan programs.
Buying your own Utah home with a FHA Loan
The Federal government as well as the State of Utah has so far developed many FHA loan programs for most low-income people of Utah to order to help them in purchasing a home of their own with considerably low down payments. Although it should be noted that the Housing and Urban Development does not issue Federal Housing Administration home loan, it nonetheless insures such mortgage loans with the intention of prompting the lenders to maintain their interest rates at a low level to loan borrowers.
The Federal Housing Administration mortgage loan program has minimal down payment costs as well as closing costs. The credit qualifying guidelines of the FHA as well as the job and income requirements are very much flexible. The FHA likewise does not require the borrower any minimum score on FICO or any other types of credit score. However, if you are in search of the lowest down payments, then it is imperative that you would have to maintain at least a fairly decent credit history background.
Likewise, the ratio of debt is much higher in a FHA mortgage loan as compared to the regular and conventional mortgage loans. FHA mortgage loan programs also allow for almost 100% of the borrower's funds to be in the kind of a gift. Under this loan program or scheme, around two or a multitude of borrowers or co-borrowers, should be able to finance the purchasing of a house. There also exist other facilities offered by Federal Housing Administration such as the guidance and assistance on the down payment as well as the programs on mortgage loan refinancing which basically is being offered by the lenders in order to attract the loan borrowers to purchase HA mortgage loans.
Benefits of a Utah FHA Mortgage
The following are some of the important highlights of the Utah FHA mortgage loan program:
- The Utah FHA loan lets you enjoy minimal down payment and closing costs:
- The down payment is less than 3.5% of the price of sale
- Available for you are 100% financing choices and options
- Down payment in a form of a gift as well as closing costs is permitted
- There is not requirement of early reservation
- The closing costs are regulated by the FHA
- Seller is able to credit around 6% of the price of sales to the costs of buyer
- Utah FHA loan also has easy qualifying guidelines on credit such as:
- No minimum requirements on the credit score or FICO score
- Federal Housing Administration will permit purchase of home two years after declaration of bankruptcy
- Federal Housing Administration will allow a purchase of home three years after any foreclosure
- Much convenient Debt Ratio as well as employment requirement guidelines such as:
- FHA loan programs have much higher debt ratios compared to the other regular home loan programs
- Being on the job for less than two years is permitted
- Self-employed prospective buyers are allowed
Such are the advantages of a Utah FHA loan program, making it one of the best and most preferred options for many first time home buyers and likewise with the move-up home purchasers. You actually do not have to be a first time home buyer to be able to avail of a FHA loan. Anyone can make use of a FHA loan so long as you do not possess more than one FHA-insured loan at any given time.