FHA PRODUCTS: GOOD FOR YOU

FHA PRODUCTS: GOOD FOR YOU

The ongoing partnership between all housing industry players -- Lenders, Brokers, Realtors®, Builders and FHA -- is critically important to our mutual success. Creating a stable housing market, where homebuyers can make sound financial decisions to achieve the American dream, must be our top priority.

Why use FHA?

Since 1934, FHA has served as an economic backstop working hand-in-hand with lenders to provide consumers with access to safe and affordable loans, even during times of tremendous market volatility as with the current subprime situation.

Developing closer ties to the lender community will allow FHA to broaden its appeal. But there are specific business reasons for lenders to work closely with FHA. Because our products offer less risk for you -- as well as fast closings, competitive rates and foreclosure protections for your clients -- you can qualify more business and improve your bottom line. FHA's positives include:

• No minimum credit score.
• Non-traditional credit is acceptable.
• Low 3% downpayment.
• Non-occupant, co-borrower is permitted.
• Expanded qualifying ratios.
• No prepayment penalties.
• Fully assumable.
• Default assistance.
• Lower premiums.
• Non-credit qualifying, streamline refinances.
• Availability: in all areas of the country, provided a market exists for the property and the home meets HUD's minimum property standards.
• Versatility: may be used to purchase or refinance a new or existing one- to four-family home in urban and rural areas, including manufactured homes on permanent foundations.
• Adaptability: typically offered at terms of 15 or 30 years.
• Negotiability: interest rates are negotiated between the borrower and lender.
• Works well with state and local agency products.

FHA-insured loans are also compatible with industry requirements for:

• Appraisal and repair;
• Closing costs; and
• Lender insurance.

Lenders can take advantage of the Automated Underwriting Systems (AUS) via FHA's TOTAL Scorecard. Plus, there is similar documentation for comparable products between us and the industry, ensuring lender savings in dollars and time.

Innovative FHA solutions such as the streamline 203(k) "buy and repair" mortgage, 95% cash-out refinance, reverse mortgage (HECM) for seniors, and basic construction-permanent or manufactured homes insured financing options are available today to meet borrowers' needs for a better tomorrow.

Now more than ever we need a sustained, coordinated industry-wide effort to strengthen the housing market for future generations. We look forward to forging a closer partnership with you and the greater lender community to achieve our goals together.