Friday, June 7, 2013

Louisville Kentucky FHA loans

Louisville Kentucky FHA loans 

The main advantage of an FHA (Federal Housing Administration) loan is that the credit criteria is not as strict as the credit criteria for conventional loans. Someone who may have had credit problems or lacks traditional credit can still obtain FHA financing.
Another perk of Kentucky FHA loans is that they allow a higher debt to income ratio than conventional loans, meaning they may require less income to qualify.
Many people assume Kentucky FHA loans are only available to first time homebuyers but this is not the case! FHA loans are available to anyone and can be used to purchase or refinance a home.

FHA loans offer a few other bells and whistles:
  • Easier to use gifts for down payment and closing costs
  • No prepayment penalty (a big plus for subprime borrowers)
  • An FHA loan may be assumable
  • Possible leniency during financial hard times
  • Funding for home improvement (through FHA 203k programs)

Condos and Louisville Kentucky FHA loans

Condo’s are allowed for FHA but need to meet FHA standards, in addition to being on the Eligibility List, the condo must recertify that it meets Owner Occupency ratios above 50% and that HOA dues are not more than 15% Delinquent.

FHA Guidelines