Home
About Us
FHA Programs
Contact Us
FAQ
Site Map

 

FAQ's

 

Q:  Is FHA financing complicated?
A: Years ago, FHA financing was more complicated than conventional financing. However changes over the years have streamlined the FHA loan process and in many cases, FHA home loans are easier than conventional financing.

Q:  Who qualifies for a FHA home loan?
A: The program is open to virtually everyone.

Q:  NO Down Payment...Is it true that I don't need a down payment or that it can be gifted?
A: Yes. Current FHA guidelines permit a relative, a governmental agency, or approved non-profit organization (via the Seller) to gift the borrower's down payment. A gift, according to HUD, is just that--a gift. HUD does not permit the borrower to repay the gift as a stipulation of giving the gift...hence, ZERO down payment.

Q:  NO Closing Costs...What is the minimum amount of money I need to buy a home with a FHA mortgage?
A: The National Housing Act requires the minimum cash investment to be 3 percent of the sales price...which can be provided, IN TOTALITY, by the Seller...hence ZERO closing costs. Even though the actual down payment may be less than 3 percent, the balance would go towards the borrower's closing costs. In the event that there are no closing costs, the down payment would be increased to 3 percent.