paperwork that’s going to be required for that particular set of paperwork. Because of my comprehensive knowledge and understanding of all the different loan programs and what they each require, I can work to fulfill those requirements and have issues resolved early. And because of my knowledge and experience, I know how to look for red flags early rather than wait until the end when everybody is set to close. I avoid what real estate agents dread — surprises where suddenly there are issues or “one more” document left forgotten. I work to get things resolved as quickly as possible. Let’s briefly review some of the different special requirements for various loan programs.
FHA Loan Program
The Federal Housing Administration (FHA) is a U.S. agency that offers mortgage insurance to lenders. The purpose of FHA loans is to give people with low-to-moderate income the ability to get a home with little-to-no down payment. Normally, banks would reject these borrowers due to the high risks involved, but the FHA “backs” the loan, which helps lenders feel more comfortable that the institution is not taking on too much risk. By being able to insure their loans with the FHA, these lenders can serve markets that otherwise would have difficulty obtaining a mortgage. This allows FHA-approved lenders to work with people who have lower incomes, first-time and senior home- buyers, or people who have lower credit ratings. The FHA is the largest insurer of residential mortgages in the world. It’s no surprise then that FHA loan requirements and guidelines are incredibly extensive, covering mortgage insurance, lending limits, debt-to-income ratios, credit issues, and closing
52
Powered by FlippingBook