An FHA loan for a buyer around Atlanta, especially a first time home buyer, is one of the very best loans right now. That’s because an FHA loan is one of the easiest to qualify for, covers all properties, and is not dependant on outside, third-party factors.
- FHA loans for Atlanta area buyers are easy to qualify for: With a minimum 620 credit score – at present – and no collections or significant late pays in the past year, the credit will be approved. And, unlike conventional loans, there are no discount points for lower credit scores that are charged. And, contrary to popular belief, the property qualifies pretty much the same as with a conventional appraisal. Just enough verifiable income for the borrower needs to be there.
- An FHA loan in metro Atlanta covers all properties: Okay, at least all residential properties that are being purchased to be a Primary residence. Properties in a “declining market” cannot be financed to the maximum Loan to Value (LTV). FHA does not have the restriction. And, Rural Housing loans are excellent, and offer 100% financing, but are only available to, well, rural homes.
- Atlanta FHA loans are not dependant on outside, third-party restrictions: For example, if a borrower getting a conventional loan, as opposed to an FHA loan, puts less than 20% down payment, then they will need Private Mortgage Insurance (PMI). The MI companies currently count metro Atlanta as a “declining market”, so even though conventional loans will lend up to 95% of the purchase price of the home, MI companies will only insure the loans up to 90% LTV. So, that’s all we can lend. Similarly, I can get an approval for a prospective home-owner with a 670 score – but MI companies will not issue PMI for any borrower with that low a credit score.