FOR IMMEDIATE RELEASE
ICBA: More Community Banks Offer FHA Home Financing Options
FHA Flexibility Benefits Community Bank Customers
Washington, D.C. (June 21, 2010)—June is National Homeownership Month, and the Independent Community Bankers of America (ICBA) and the nation’s nearly 8,000 community banks are calling attention to the range of responsible mortgage products, including Federal Housing Administration (FHA) programs, that community banks offer to help borrowers finance their home purchase or refinance an existing mortgage.
“Over the past few years FHA mortgages have become increasingly popular, and ICBA is seeing more and more community banks offering FHA mortgages as part of their mortgage-product portfolio,” said Jim MacPhee, ICBA chairman and CEO of Kalamazoo County State Bank in Schoolcraft, Mich. “As we emerge from a period of so much uncertainty, FHA mortgages offer a wide range of advantages that make them attractive to first-time home buyers.”
Because FHA loans are backed by the government, borrowers may have greater flexibility when using FHA financing. Benefits associated with obtaining an FHA mortgage include:
- Lower down-payment requirements.
- More flexible total debt and housing debt-to-income ratios.
- No reserve requirements for single-unit properties.
- Lower monthly mortgage-insurance premiums compared with the conventional conforming market.
- Less stringent credit qualifications.
- Third parties can pay for closing costs, prepaids and escrow. FHA mortgage terms may allow you to add closing costs to your mortgage.
- Down-payment assistance and secondary financing allowed.
“For more information about FHA financing and other mortgage programs, customers should speak with their community bank first,” MacPhee said. “Community banks are common-sense lenders that will work with their customers to find the best possible mortgage option.”