Exciting news! Here at KLM Mortgage Group we have been approved by FHA! This means that I now have some new loan tools in my arsenal. FHA insures mortgages for some folks who don't qualify for Fannie Mae loans. In the last few years the "sub prime" market has been the most convenient source of mortgages for borrowers who don't qualify for Fannie Mae loans, but with the recent fallout in the sub prime market it has gotten much more difficult for borrowers with credit problems and not much cash in the bank to get a mortgage. FHA provides a great opportunity for these borrowers.
Some highlights of FHA insured mortgages:
- No minimum credit score
- Reserves (cash in the bank after closing) are not required
- No prepayment penalties
I'm excited to be able to offer FHA loans for people who previously would have benefitted from the now almost extinct sub prime products. Please call me if you would like to learn more!
