Unique FHA Advantages
Help Your Client Get the House they Want – Not the House They Think They Can Afford
In this seller’s market, every dollar of negotiating power counts. Not every client wants a small starter-home built 30 years ago; some want new, shiny and BIG. So the question becomes, how do you help your clients not compromise their dreams, without setting them up to fail?
Most people know the FHA program has unique advantages compared to other loan programs, especially as it allows for low payments. But did you know that for buyers who qualify, grant programs and gift funds may be used to help pay for closing costs and prepaid items? This means a property which appears to be outside of the borrower’s price range may now be in reach.
Additionally, even if a borrower can mathematically afford all of the house they want, that doesn’t mean they will be comfortable with the price tag. The FHA program may allow buyers to get every square foot of space they need, without spending every dollar they have.
If your client is more than happy with the costs, but doesn’t fit conventional guidelines for Debt-to-income ratio (DTI), FHA may also offer them a viable alternative, depending on their financial profile. And if your client has less than ideal credit without a lot of funds to put toward the home, FHA may have less expensive Mortgage insurance for borrowers with lower credit scores, keeping more money in your client’s pocket.
As great as these FHA Advantages are, it’s good to keep in mind FHA guidelines are different than conventional loans in many other areas, too. So before you write the contract up with FHA financing, let PRM supply your clients with an FHA pre-approval and so they can shop with confidence. Together we can help your clients get the house they deserve!
Contact PRM today for more information.Advantages, Buyer, DTI, FHA, Homebuyer, homes, House, Seller