Here is a great list of positives about an FHA mortgage that I picked up from First Capital that I felt buyers should know about...

• Common sense underwriting
• Maximum loan amount $729,750
• No declining market appraisal issues.  Lenders are not reducing the loan to value if a home is in a "declining market" whereas all traditional loan programs are being cut by 5% loan to value
• Buyer can put as little as 3% down of which all may be gifted
• Seller may contribute 6% credit to buyer - 3% for closing cost and 3 % for down payment
• Buyer may not need money out of pocket with some assistance programs
• An employer / parent may co-sign and qualify for the loan as a non-owner occupant co-borrower
• Flaws in credit history are allowable
• Debt to income ratio of 31% / 43% or higher
• Interest rates are generally at or below market - full documentation required for most loans

Kevin Schmidtchen - Thank you for reading.  I hope you find Santa Barbara Real Estate Voice informative.  Please feel free to contact me or comment below with any thoughts.

Subscribe to Receive Personal Listings of Santa Barbara Area Properties

Search the Santa Barbara Area MLS