FHA Mortgages in Plattsburgh NY

The Federal Housing Authority has been insuring Mortgages for many years and in many cases is one of the most affordable and flexible mortgage options.  When researching what program is best for you your it is important to consider what best suits your financial needs.
If you are looking for a low down payment program with flexible credit options an FHA Mortgage may be best for you
What kind of Credit Score is needed?
Plattsburgh Mortgage center has a network of lenders that normally require a 580-620 credit score to qualify for a FHA mortgage.  The higher your credit score the lower your rate and monthly payment will be.  A good first step in considering purchasing a home is to check your credit score.  There are many Free online programs that can give you your credit score for free.  This is a good step to ensure your credit report is error free and allows you to manage any negative accounts before you buy a home.
How do I determine If I can afford a home?
Lenders use what’s called a Debt to Income Ratio (Debt to income explanation) when figuring out how much home you can afford.  This calculation uses your current payments with the addition of the proposed mortgage.  FHA suggests a 43 percent ratio but this number is flexible in certain cases.  Give us a call today and we can calculate your DTI ratio.
How much will I need to put down?
The below chart can simplify FHA downpayment options
Single Family/Condo-   3.5%

Duplex-                            3.5%

Multi Family Home –    3.5%
If you are interested in other down payment options follow these links No money down loan with USDA      No Downpayment VA loan
Can I get help from a family or friend to pay for closing cost or down payment?
FHA loans are fairly flexible with Gift funds for down payments, however they are strict with the source of the gift funds.  Gift funds are not available from anyone involved in the sale or purchase of the home.  Below is a list of acceptable sources of gift funds
-Close Family Friends
-Government sponsored Homeowners Assistance Program
A more detailed explanation of Gift funds can be seen here Gift funds explained

Reserve Requirements

Reserves are the saving’s you have left after you close on a loan for your home.  One month’s reserve is equal to one Months Mortgage Payment (principal, interest, taxes, insurance and Mortgage Insurance).   If you are buying a single Family home, condo, or 2 unit Home FHA does not require Reserves; however when purchasing a 3-4 Unit home Two to Three months are usually required.  When shopping for a mortgage you should discuss the best loan programs with a Seasoned professional Choosing a Mortgage Professional

To learn more about FHA Loan Programs or other Home Loan Programs in Plattsburgh NY Give us a call or continue your mortgage education follow the links below
Questions to ask your prospective Real Estate Agent
The Tax benefits of Home Ownership

 All information in this post is for educational and informational purposes only.

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