New York FHA Loans
FHA mortgages are issued by federally qualified lenders and insured by the Federal Housing Administration.
It is designed for an individual who is looking to pay a lower down payment on a purchase. FHA also offers home improvement loans on primary residence. It is available for 30, 25, 20, 15, and 10 years fixed terms and in adjustable rate mortgage (ARM). New York FHA loans are popular with first time home buyers and borrowers with low credit scores.
Advantages of an FHA Loan
- Individual can qualify with less stringent requirements.
- Down payment is as low as 0- 3 ½% in the form of gift or out of pocket money.
- Available to all first time home buyers.
- No prepay penalty for early payment.
- Funding for home improvement.
- Gift can be used for down payment and/or closing costs.
- Available for individuals with less than perfect credit.
- Only two years of waiting period for individuals who’s gone through bankruptcy, and three years for foreclosures.
- Closing cost can be financed by the sellers for up to 6% of the sales price.
- Higher debt-to-income ratio to qualify.
Disadvantages of an FHA Loan
- Available for only primary residence
- Due to higher up front mortgage insurance premium (UFMIP) and monthly insurance premium (MIP), FHA can be very expensive.
- During seller’s market, seller can choose to accept conventional mortgage applicants with larger down payment offer rather than FHA applicant.
- Loan limits are restricted as per the county in which you reside.
Lion Mortgage offers knowledge and experience working with New York FHA loans and is your premier New York home mortgage resource. Please contact us today or apply online to see if an FHA mortgage loan is right for you.
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