FHA loans in Marietta GA
FHA loans in Marietta GA will allow people with that have difficulty obtaining conventional financing to still qualify for a loan to purchase their new home.
Challenges that FHA loans in Marietta can help overcome are:
- Down Payment: While conventional financing requires a 5% down payment and even higher in some cases, FHA loans only require a down payment of 3.5%. Furthermore, unlike conventional financing an FHA loan allows for the down payment to come from a family member as gift funds as opposed to being the buyer’s own funds from their savings.
- Cash to Close: FHA loans will allow for the seller to pay most if not all of the buyers closing cost. Although conventional loans only allow for the seller to pay up to 3% of the buyers closing cost the FHA loan will allow for the seller to pay 6%. This fact alone combined with the lower down payment requirements can save the buyer’s thousands of dollars at closing and opens the door for many more people to be able to qualify for a home purchase.
- Credit Requirements: Conventional financing takes a much tougher stance on past credit issues that does the FHA loan program. While conventional will require as much as a 7 year wait to qualify for a loan following a credit event such as a bankruptcy, foreclosure or short sale, the FHA guidelines are much more forgiving. FHA loans are available as soon as 2 years following a chapter 7 bankruptcy and 3 years following a foreclosure and each of those can be decreased by 1 year in cases where the buyer can document extenuating circumstances as the cause of the credit difficulty.
While it is true that FHA loans have become less competitive in the last few years due to their increased monthly mortgage insurance payments and people that can qualify for other loan programs will often avoid and FHA loan, it is also true that an FHA loan is often the only loan program available for many that are looking to purchase their new home.
Give us a call today and see if an FHA loan in Marietta GA is the right loan for you, or if there is another loan program that would be more suitable for you to purchase your new home.
Bill McDonald Mortgage Originator nmls #95835
157 Laurelwood Ln Crossville, TN 38555