The Advantage of FHA Cincinnati Loan
One of the major benefits of Cincinnati FHA loan is that it helps homeowners get a much better rate from lenders. Although the Federal Housing Administration loans are not exactly your typical loan because all they do is insure your loan, it actually works out very well since the mortgage will have a much lower down payment as well as the closing cost and the drop in credit thresholds. This means that the lending institution will be able to provide a much lower interest rate for borrowers who may otherwise not qualify for a mortgage. It is a common fact that the rates will vary according to the borrower’s credit history and credit score, the better the score the better the rate. Here at The Mortgage Network of Ohio we have over 20 lenders and some of these lenders will go down to credit score of 580.
Why Take Advantage of FHA Loan?
With today’s erratic condition of our fluctuating economy, buying a house could be an option which can be daunting sometimes because of financial issues. There’s a lot to think about when buying your first home, and since we are experiencing a very unstable economy, and with all those inevitable foreclosures you hear from the news, buying a house can be a very discouraging proposition. However, using Cincinnati FHA loan to assist with your mortgage, you can be able to take advantage of new lending limits for mortgages amounting up to $314,827 for a single family, $403,125 for a 2 family, $487,250 for a triplex and $605,525 for a 4 family.
Seller can assist the buyers with closing costs in Cincinnati on an FHA loan of up to 6% of the purchase price and some borrowers may qualify for a buyer assistance programs that will help in covering and mortgage down payment.
With the support of FHA loans, the Federal Housing Administration is trying to revolutionize this particular paradigm about today’s economy and the prospect of buying a new real estate property. Even first time homebuyers can take advantage of this program particularly when they have bad credit history or low credit rating. This can be a great motivation for most home buyers since this can significantly help their finances in obtaining a new home. This can be translated into a form of savings that can be used to help them cover other financial aspects in buying a new home.
More often than not, lenders usually ask for a sizeable mortgage down payment just in case property values collapse again and the real estate market will suffer a significant decline. Under these conditions, the only effective way to obtain mortgage loans in Cincinnati with a much lower down payment cost is with the assistance from the FHA. Although FHA loans are not exactly a financing program, their insurance support offers a powerful leverage for homebuyers to get lower down payment.
And in addition to home purchase, the financing can also be applied to other expenses like remodeling costs or home repairs. Even expenses associated with home energy saving improvement are also included. For people with mortgage free houses can also apply for FHA loan in Cincinnati to obtain reverse mortgages. This will enable them to convert their equity into cash which can be an additional source of money for other expenses.