Little or NO Money Down
100% of the Down Payment
can be a Gift
Non-occupant co-borrowers
are allowed to assist in
qualifying for the loan
FHA loans are assumable
under certain conditions.
(Conventional fixed rate loans seldom are.)
The Seller is required to pay
Processing fee,
Document Prep Fee, and the
Tax Service Fee in an FHA loan | |
|
The VETERAN can literally move in WITHOUT any of their own funds!
NO Down Payment Up to $359,650
100% of the Down Payment
can be a Gift
VA loans allow the borrower to use 100% gift moneys for the down payment.
Closing costs can be paid
by the seller, or
gifts funds may be used
No Closing Cost
Easier qualifying standards
No prepayment penalties | |
|
Bankruptcies
2 years from date of discharge
No late payments in the last 12 months
Foreclosures
Must be more than 3 years old
No late payments in the last 12 months
Repossessions
Must be more than 2 years old
No late payments in the last 12 months
Late Payments
No late payments in the last 12 months |
|
Bankruptcies
2 years from date of discharge
No late payments in the last 12 months
Foreclosures
Must be more than 3 years old
No late payments in the last 12 months
Repossessions
Must be more than 2 years old
No late payments in the last 12 months
Late Payments
No late payments in the last 12 months |
Underwriting guidelines for VA loans are even more specific.
For example, a borrower may be able to get a VA loan one year after discharge of a Chapter 7 if the borrower is re-establishing credit and can demonstrate that the bankruptcy was due to circumstances beyond their control such as "medical bills not covered by insurance," according to the The VA Lender’s Handbook by Allregs.
According to HUD / FHA
For example, loans may be permitted for consumers who have discharged their bankruptcy as recently as one year ago if the borrower can demonstrate "extenuating circumstances beyond the control of the borrower." Documenting the fact that an unexpected illness caused high medical bills would be one way to address this guideline and help the borrower get an FHA loan. |