Get to know FHA, it's going to be a good friend of the real estate recovery for buyers and sellers. FHA loans can do many things that conventioanal loans cannot. Let's start by dispelling some of the myths that I keep hearing. Myth #1-- FHA loans are harder to get done then conventional. Actually, it is the opposite. In most cases, FHA has more lenient restrictions then conventional. Here are some examples: Only 3.5% down required Entire down can be a gift Can lend to a 55% expense ratio no reserves are required Seller can pay 6.0% credit towards ALL costs (not downpayment ) due at closing Lower credit score requirements You can add as many coborrowers as you need to make a deal work. Myth #2-- FHA is slow. It is true that they can't be rushed that fast, but they are not slow. I can have a lender approval for you within a day of taking the loan application. The file won't need a second signature, or to be passed around for different departments to review. Myth
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