FHA loans offer an advantage to first time home buyers that commercial banks cannot.  Most commerical banks require a minimum 10% down payment.  On a $300,000 house that would translate into a $30,000 down payment.  However, FHA allows for a 3.5% down payment which would translate into only $10,500 on a purchase of $300,000.  Due to this lowered percentage, people are able to save more money on their down payment.

The benefits are as follows:

• Credit requirements are less stringent than conventional loans
• 100% of the money for a purchase can come from a gift for an FHA loan
• Closing costs may be gifted as well
• 6% of the closing costs can come from a seller contribution allowing greater flexiblity to structure a purchase transaction
• Use of alternative credit is allowed to complement a credit history tha may be bruised
• FHA loans are available up to $729,000
• Condominium financing is available with only 3.5% down

CALL A NEW JERSEY LOAN OFFICER TODAY AT 973-283-8111